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The term “outsourcing” has become widespread in the modern world. What does this foreign word mean and what is it used for?
The term "outsourcing" comes from English word outsourcing. It means the use of any external sources or resources. In the business environment, outsourcing is the transfer by an organization (under a pre-drafted agreement) of any types of production and entrepreneurial activity another organization that works in a certain area.
Unlike various works that are performed on a one-time basis, periodically and with a limited beginning or end in time, outsourcing is the transfer of functions over professional performance services for the uninterrupted functioning of systems and any infrastructure for the period of a long-term contract. Typically, the duration of an outsourcing contract is at least one year.
IN Russian business business practices for the needs of outsourcing are transferred such functions as accounting, ensuring the functioning of the office, translation services, transport services, supporting the functioning of computer networks and information infrastructure, any work in the field of advertising, as well as ensuring security.
If you use the information from the Institute of Outsourcing, this area of activity today is one of the developing types of optimization of the work of companies and enterprises. Equally important is that the highest growth rate can be seen in the region financial services and accounting.
Data collected back in 1997 by the American Management Association showed that at that time, about 20 percent of all 600 companies surveyed had outsourced at least a certain portion of all their financial and accounting tasks, and 80 percent of companies had outsourced almost 80 percent of all its functions are administrative.
What types of outsourcing exist today?
This type of outsourcing (also called industrial) performs the functions of transferring part of the production or the entire production of any elements, components and parts to a third-party company.
This type of outsourcing is especially popular among various companies in the computer components production sector.
As it is also called, ITO implies delegation to any professional team to resolve certain issues that are related to the development, implementation or maintenance of information systems at the level of the entire infrastructure of any enterprise (maintenance of equipment or software), and a certain set of work related to the development or support of the normal functioning of a number of areas of systems (for example, programming, testing and much more).
So complex name means that this type of outsourcing is necessary in order to manage processes that require fairly in-depth study or serious data processing analytics.
This type of outsourcing will also be required for the formation and management of so-called “knowledge bases”. They may be needed to support the adoption of certain decisions. It is also worth adding that knowledge management outsourcing is just beginning to gain popularity in the United States.
There are a number of rather difficult issues associated with outsourcing. For example, in a number of situations, a company is obliged to transfer functions to carry out certain activities to other companies.
A striking example is when a mutual investment fund does not have the ability to keep records on its own (usually the problem also lies in the fact that mutual funds cannot even monitor and manage their own assets). For this reason, the mutual fund is forced to resort to the services management organization, auditor and even custodian.
Already today in the world one can count a huge number various types business process outsourcing. Some of these types of outsourcing are quite successfully used in Russia. Depending on some of the specifics and scope of activity, tasks and goals in each specific organization, the processes transferred to any third-party organizations for execution may differ greatly from each other.
However, there are some striking examples that perfectly illustrate the importance of outsourcing for many companies, regardless of their size.
Rapid development of the sector information systems This has led to them also being able to outsource and take on a range of tasks from third party companies. Until the 90s, many types of outsourcing (for example, offshore outsourcing of companies performing the function of a call center) were difficult to implement. This was due to a number of technical reasons and circumstances.
Often, the concept of “outsourcing” information processes» understand the outsourcing of IT processes to companies that are in no way connected with the IT industry. In Western European countries, the USA and Canada in last years IT outsourcing has become widespread, which has some characteristics. The point is that the contractor receives the entire IT infrastructure of his customer. This is a rather risky option when it comes to expensive equipment that can easily be damaged.
For this reason, such an approach is extremely rare in Russia. Most often, companies choose to use limited types of such outsourcing. For example, application hosting, technical support for small corporate websites.
Also today, the main providers of outsourcing services in the IT field are the so-called “system integrators,” although over the past couple of years a set of serious Russian players have already appeared who consider outsourcing the main type of their professional activity.
Also, in recent years, large global companies such as IBM and HP have increasingly entered the Russian market. There is also the Saas model, which can also be considered as an option for outsourcing in the field of software operation.
Outsourcing in the field of information technology today is the transfer to a contractor of a whole set of internal services or work of the customer organization. Also, this set of works may include the use of software products of the customer company, some applications and parts of the infrastructure.
The simplest version of this practice can be called banal hosting of a company website. Many of modern organizations use outsourcing, which can be called a sign of the popularity of this type of service. Outsourcing is also quite beneficial for the end consumer.
In Russia, outsourcing can be considered as a service that is organized by a specific company, where a couple of services can be provided comprehensively in order to cover as many of the potential client’s needs as possible. Despite this, in reality the emphasis is on a specific service (the most profitable for the outsourcing company: a service on which you can make great money).
Servicing personal computers on a subscription basis is the most popular look outsourcing in the field of information technology.
With this type of service, the customer receives an offer for a comprehensive set of various services that will allow him to do it completely without intervention or at least significantly reduce his workload.
What does computer subscription service include?
With this type of service, the customer receives a whole range of different services, which allows him to do it almost completely without any administration. Now the outsourcing company will be engaged in setting up and updating the technical part of computers, setting up and updating software, creating effective anti-virus protection, prevention (of an anti-virus nature), timely repair and replacement of equipment, various preventive measures, backup of important information, consulting and training of personnel on issues related to and literate and effective use computer equipment.
Also, some companies providing outsourcing services resort to a number of related services. For example, supporting the performance of office equipment, upgrading the computer fleet, laying local networks, IP telephony and setting up a PBX, auditing and consulting. It is for this reason that servicing just one computer network can take the form of servicing an entire complex of information systems of the client company.
Outsourcing is also used in the financial sector.
Most often you can find accounting outsourcing. The thing is that accounting is quite difficult and this difficult process may require some specialized knowledge. In such a situation, the simplest and most effective solution would be to give Accounting for outsourcing. This will save time and effort on other (more important) tasks.
Outsourcing is the transfer of certain functions or business processes from one company to another on the basis of a concluded agreement (subcontract agreement). Not all functions are transferred completely, but only a certain part, and therefore the costs of retaining personnel are reduced.
Translated from English, this means: attracting external resources for the successful functioning of one’s basic needs.
In modern world outsourcing- this is the relationship between the customer and the contractor on the basis of a specific agreement (contractor agreement). Such interaction is beneficial both to the customer (saving financial resources) and to the contractor (making a profit from organizing the functioning of a certain type of activity).
Basic principle of outsourcing consists of transferring non-core activities, processes and assets of the company to external management of a partner company on the basis of a concluded agreement.
This, in turn, helps the company focus its efforts on its core activities, make more efficient use of its fixed assets, reduce its actual headcount and significantly reduce production costs.
Operational outsourcing is becoming increasingly popular in the modern world.
Organizing an outsourcing company means opening your own business. You can register as an individual entrepreneur or as a legal entity.
Having decided to open your own outsourcing company, when registering it, you must immediately indicate the main types of activity.
The most popular in this area are:
You can choose any field of activity, the main thing is that it is in demand in your region. You can collaborate with domestic companies, and foreign.
Eg, credit organizations countries often cooperate with outsourcing firms. Since it is much cheaper to organize a call center in a small town than in St. Petersburg or Moscow.
A credit organization transfers certain functions of advising clients or selling credit services to an outsourcing company, and the latter, in turn, organizes the work and receives its income for this.
The outsourcing company will, of course, need to have starting capital on the:
But the financial costs pay off very quickly if the work is properly organized.
When organizing an outsourcing company, special attention should be paid to its personnel. Depending on the chosen field of activity wage-earners are required to have certain skills and knowledge. the result of work, productivity, and the company’s reputation in the service market will depend on this.
When choosing a specific area of activity for a company, it is better to independently navigate the basic requirements for workforce or hire an experienced HR specialist.
Drawing up a business plan when organizing business activities in the field of providing outsourcing services carefully study the presence of competitors and their work:
You need to find your niche, the uniqueness of providing services in cooperation with various companies. Initially, you can focus on one type of activity or cooperate with one company.
But in order to avoid various risks over time, it is better to enter into agreements with several companies for further cooperation if certain resources are available. This will be a kind of insurance, stability and a guarantee of high profits.
When developing a business, it is very difficult to avoid an inadequate increase in staff. The larger the enterprise, the more various auxiliary, controlling and other non-core divisions it contains: as a result, the issues of not even optimization, but simply ensuring the effectiveness of interaction, become relevant. The solution may be to outsource some of the tasks to third parties.
Outsourcing - what is it? in simple words? This term refers to the process of attracting external resources to perform part of the business processes that are not directly related to the scope of the enterprise. Given the narrow specialization of outsourcing companies, the result can be expected to increase speed and improve the quality of service, coupled with a significant reduction in costs for non-essential activities.
This means that outsourcing differs from conventional freelance maintenance, service or support in the following ways:
Traditionally, companies entrust third-party contractors to perform work that is not directly related to their field of activity. However, given that outsourcing is a concept that includes many areas of cooperation, we can highlight:
Cooperation is possible in such areas as:
Companies that do not use the services of leasing personnel are forced to employ and pay wages, including to employees whose services are needed only occasionally. The costs associated with this can amount to a significant portion of the monthly budget.
Business outsourcing system
There are also situations in which:
The solution to these problems may lie in the opportunities offered by outsourcing to small businesses. Moreover, the involved organization most often has additional resources and, with narrow specialization, pays attention to the constant professional growth of its employees, which improves the quality of work and the level of service in general.
The main capital of an outsourcing company is a database with contacts of performers, indication professional qualifications, specialization and work experience. Depending on the customer’s requirements, the markup on their services can be 30–50%, however, even taking this into account, the involvement of third-party contractors allows you to reduce costs several times. Let's take accounting outsourcing as an example:
When leasing personnel, workers and trade specialties their services are usually paid at a fixed rate in the range of 200–300 rubles per hour. Each employee brings the company about 20–25 thousand rubles in monthly income, making outsourcing as a business a profitable and promising activity.
Before opening an outsourcing company, you need to research the market and identify profitable areas with the least level of competition. Theoretically, a wide range of services allows you to increase income, but in the case of a newly created enterprise this entails significant additional costs. Therefore, you should start with a narrow specialization, gradually expanding the scope of activity and including related areas.
A prerequisite for cooperation is the conclusion of an agreement, which should indicate not only the cost of services, but also the obligations of the parties to maintain confidentiality, financial liability and penalties. Strict adherence to agreements, decency and other positive business qualities have a beneficial effect on the reputation of the outsourcing company and serve as strong arguments for potential clients.
For the customer, the main argument in favor of leasing working personnel is the opportunity to focus on core tasks and direct the saved resources to the development of the enterprise. In addition, outsourcing helps:
A staff rental business does not require any additional permits or licenses. Before opening an outsourcing company, it is enough to choose the legal form of the enterprise and the taxation system. Preference is given to registering an LLC, since many large companies are wary of individual entrepreneurs. Of course, this entails some additional costs (registration and formation costs authorized capital are about 30 thousand rubles), however such organizational structure allows you to attract investors or create a business by leasing staff together with partners.
The basis for the success of an outsourcing business will be effective personnel selection techniques. The qualifications and integrity of the performers should not raise doubts in the customer’s mind, but should work for the company’s reputation, helping to attract new clients.
At the initial stages, the company’s staff may consist of 8–10 people with qualities such as:
The qualifications of employees should be regularly improved by conducting various trainings, seminars and training courses, since the level vocational training personnel is one of the advantages of outsourcing business.
It is advisable to involve an accountant and a lawyer in the work - the latter is needed to draw up correct contracts with clients. As the company's customer base increases, it will also need a sales manager and a human resources manager.
The sales manager is searching corporate clients and placing orders. His tasks include:
The responsibilities of a recruiting manager should include searching for employees, conducting interviews, and monitoring the activities of employees at the customer’s enterprise. In addition, he must:
Most often, a newly created outsourcing company does not have sufficient resources to use all modern methods of personnel selection. At the same time, finding a qualified specialist for a vacancy with an average salary can be a difficult task. In such a situation, it is advisable to use all available methods, taking into account their features and disadvantages:
The activities of an outsourcing company are not accompanied by a search for large production premises: if we are talking about information support, accounting and legal services, IT support - an office of 20–25 m² is enough. However, organizing a call center, logistics or vehicle maintenance may include the rental of appropriate space and the purchase of equipment. This must be taken into account in the business plan of the outsourcing company.
To ensure the activities of the enterprise, first of all, you should purchase furniture, office equipment and communications equipment. It is advisable to divide the workspace into zones - a reception area, a meeting room, an administrative office and a place for interviews. Repairs can be avoided if the premises are selected in one of the business centers - otherwise the need to put the office in order will entail additional costs. In general, investments in outsourcing business include:
Salary costs for key personnel depend on the number of employees and their professional qualifications. However, it should be taken into account that the income of the enterprise also depends on these same factors. Before opening a recruitment agency, it is imperative that you perform the appropriate calculations and make sure that the chosen strategy is profitable.
In absolute terms, the labor cost of hired personnel is higher than that of the company’s own employees, however, saving time and resources lead to the fact that this method of organizing the work process turns out to be more economically profitable. There are three main types of payment for services:
The amount of payment based on results depends primarily on the complexity of the work. For example, simple accounting services for an enterprise with a minimum amount of documentation are estimated monthly at 5–6 thousand rubles, while more labor-intensive options will cost the customer 15–20 thousand rubles.
When paying for real time, the services of a low-skilled employee (loader, packer, cashier, merchandiser) are estimated at 220–350 rubles per hour. Considering the average wages, it can be calculated that each such employee, when fully employed, brings the outsourcing company up to 20–25 thousand rubles in monthly profit.
It is advisable to start your activity by searching for potential clients. The presence of two to three regular customers at the time of opening an outsourcing company will allow you to avoid downtime and associated losses, which can be minimized by introducing hourly or piecework payment services of attracted personnel.
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Considering that personnel outsourcing is a business area that is still not known to the general public, it can be assumed that its promotion will require significant resources.
The process of searching for employees should be organized taking into account their social status, preferences and lifestyle. A qualified accountant or system administrator difficult to find using newspaper free ads, while general workers trust information from such sources more.
To find new clients, advertising is used in specialized publications, the business press and on street media. However, the greatest effect is the personal contact between the manager and the head of the enterprise, aimed at organizing a meeting and presenting services.
Outsourcing as a business arouses natural interest on the part of domestic entrepreneurs. Particularly popular are types that do not require significant investments - accounting and legal support, personnel support using modern methods of personnel selection, IT, security and cleaning services. However, the main obstacle to the development of services of this kind is the excessive caution of businessmen and their desire to completely control all areas of the enterprise’s activities. It can only be overcome by actively creating the image of outsourcing companies as partners who inspire trust and strictly adhere to the rules of business ethics.
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Many enterprises, in order to save money during the economic crisis, are forced to reduce staff, so they have to transfer some functions to incoming specialists. In this regard, companies are opening everywhere that provide businessmen with such a service. We will try to tell you what an outsourcing company is in simple words in this article.
Let's take a closer look, what is personnel outsourcing? The word "outsourcing" is translated from in English, as an “external source”. The process itself consists of transferring the performance of some minor functions to third-party performers. In order to save money, one company can transfer a number of functions to another. Most often, services are single in nature or provided sporadically over a certain period of time.
The outsourcing company provides clients with professional support, ensuring uninterrupted operation of infrastructure facilities or individual systems on the basis of a cooperation agreement. That is, personnel outsourcing is a long-term business relationship between the contractor and the customer, secured by contractual agreements. Any services provided by external providers should not be classified in this area. Outsourcing is the transfer of non-core activities, which, in fact, a company can perform on its own, to third-party specialists for a long time. That is, the customer uses the services structural unit, which remains legally independent from its organization.
The popularity of outsourcing services is growing rapidly, but the market is not yet oversaturated, so novice entrepreneurs who decide to try their hand at this area can easily find their niche here. Oddly enough, the greatest demand for such services is observed during a crisis. This is the best time to build a successful outsourcing business.
Companies that order staff leasing services have the opportunity to significantly reduce the cost of maintaining their own employees. In some areas, budding entrepreneurs can work alone, but sometimes they need help. In this case, it is more profitable to enter into a contract for the rental of working personnel with an outsourcing company than to hire employees and pay them monthly wages.
Before opening an outsourcing company and completing all the documents, you need to carefully analyze the market. Nowadays, accounting, legal support, marketing and IT are most often outsourced. When analyzing the market, pay special attention to the level of competition. If there are several operating in your region large companies to provide staff for rent, it is better to abandon this idea and choose another line of activity.
So, you have drawn up a business plan for an outsourcing company and are ready to get to work. The first thing you need to do is officially register your business. It is better to register an outsourcing company as an LLC. Of course, in this case you will not be able to receive any benefits when paying taxes, but this organizational and legal form allows you to enter into agreements with other organizations. In addition, you need to open a bank account, as well as register with an insurance and insurance company. Pension Fund. Your own outsourcing company is the simplest and most affordable option for aspiring entrepreneurs who are looking for...
Experienced businessmen use modern methods recruiting personnel to work in an outsourcing company. This is very important point, which needs special attention.
In your work you need to use the most effective methods personnel selection, since the reputation of your company and, accordingly, its profitability largely depends on this. For full-fledged work at the start, you will need about 10 qualified employees.
Before opening a recruitment agency, you need to study the basic tools for selecting employees. If you do not have experience in this area, hire an experienced specialist to help you understand this difficult matter.
An outsourcing company as a business is a profitable and quite promising business that does not require significant financial investments. To start you will need 300–350 thousand rubles. This money will be spent on renting premises, paperwork, purchasing office equipment, advertising and employee salaries. If you do not have such start-up capital, you can ask around or find investors who will finance your enterprise.
It is worth noting that 220 thousand rubles are monthly expenses. You can't expect instant profits in this business. To reach good income, you need to work on it first client base. When customers are convinced of high quality your services, profits will begin to grow. According to experts, the profitability of this business is 35–40%. The average monthly income of a small company providing labor outsourcing is 300–700 thousand rubles. If you can attract regular customers, the business will generate a decent, stable income.
The importance of leasing personnel services in our country is greatly underestimated. But the situation is gradually improving, so entrepreneurs who want to start activities in this area can easily adapt to the market. In a few years, the level of competition will increase significantly. If you are attracted to this line of activity, hurry to take your place in this promising and quite profitable field of activity.
What types of outsourcing services are there? How to choose the right outsourcing company? What are the features of outsourcing online stores?
Good day to all visitors to the HeatherBeaver online magazine! Anna Medvedeva is with you. We will devote our article to the topic of outsourcing.
The benefits of outsourcing have already been appreciated by many entrepreneurs and business managers. We will try to fully explain this concept, and also help you understand the nuances of the process.
This information will be useful to anyone who seeks to reduce costs and optimize their business activities.
So, let's begin!
The term "outsourcing" is of English origin. Its literal translation is “use of external resources.”
This is the transfer of secondary functions of an organization to another company that specializes in this area. The presence of a business process and the duration of cooperation (1 year or more) distinguish it from other types of service provision.
What's the point? The management of each organization strives to ensure that all areas of its activities are at high level. But this is ideal.
In practice, this is quite difficult to achieve. After all, not every enterprise can afford to employ highly qualified employees from absolutely all departments - this is too expensive.
Typically, preference is given to specialists in the relevant field. The best are selected from them, they are given the opportunity to improve their skills, and their work is paid at the proper level.
Employees of other, non-core services can rarely count on this. HR specialists, computer specialists, lawyers and various other workers fall under this category. And I want to get good results from their activities.
This may also be the case when:
Therefore, outsourcing cooperation is a very tempting alternative. You outsource a certain job to a company that specializes only in this area. Naturally, its employees are more highly qualified and perform their work more professionally.
The full scope of work for a particular profile is not necessarily transferred to outsourcing. You can conclude an agreement to perform only part of the functions, leaving the field for activity to your full-time specialists.
Example
The company has one accountant on staff. He is engaged in processing and systematization primary documentation required for various reporting.
This is where the work of a full-time accountant ends. He transfers the documents to an outsourcing company, whose specialists prepare all the reports and submit them to the tax authority.
Let's now see which types of outsourcing services are most popular.
Type 1.
Ordinary full-time employee servicing computers and local networks usually has a minimum set of professional skills and abilities. And when it comes to programming, things get really bad.
Therefore, the computer services sector is perhaps the first candidate for an outsourcing agreement. For information on how best to do this, read the article “”.
Type 2. Accounting outsourcing
Type 3. Outsourcing of labor protection
The concept of labor protection is very vague for many. If at large enterprises a separate service is organized for this, then at small enterprises they often do not even know about it. And the law requires compliance with rules and regulations.
Type 4. Legal outsourcing
Everyone has problems with the legal department. Not every organization can hire highly qualified specialists. This is generally unprofitable for small businesses. In addition, there are no lawyers who are professionals in absolutely all areas of jurisprudence.
If you outsource the work of lawyers, you can get comprehensively competent case management. About this in the article "".
Type 5. HR outsourcing
The work of the HR department, especially in small enterprises, is often given to other specialists - a secretary, an accountant, a lawyer. If an organization is actively expanding, it is very difficult to devote time and due attention to careful selection of personnel.
This situation is well known to many. It is also known at what level the work of personnel officers is carried out. Outsourcing in this case is a way out of the situation, as described in the articles “” and “”.
Type 6. Sales outsourcing
The work of sales managers is a very shaky field. Everyone is always looking for them, since conscientious, hardworking and productive people are not so easy to get.
But it is possible to find such companies on the market of outsourcing companies. In addition, you can enter into an agreement with a specialized company for the outsourcing of online stores. This form of cooperation is described in the article "".
You can also outsource foreign economic activity. You can read the publication “” about this on our resource.
3. How to switch to outsourcing - step-by-step instructions for beginning businessmen
Where to start and in what direction to think? Let's create an approximate algorithm.
Step 1. We analyze the company’s activities
Although outsourcing has many advantages, it is not suitable for everyone. And the first thing you need to determine is whether you need it? And for this you need to thoroughly analyze the situation at the enterprise.
This means:
- determine the goals and objectives of the transition to outsourcing;
- calculate how much it costs to maintain a full-time service;
- calculate how much outsourcing services will cost;
- compare indicators and draw conclusions.
The more thoroughly you analyze the company’s activities, the more accurately you can determine the need to switch to outsourcing.
Step 2. Select an outsourcing company
The success of the entire enterprise primarily depends on this. Make a list of requirements for the outsourcer. Then study the market and settle on a few companies that best suit your needs.
Regardless of the criteria you define, a serious outsourcing firm must have:
- good reputation;
- work experience;
- reputable clients;
- positive reviews;
- licenses;
- insurance.
Conduct negotiations, clarify the terms of cooperation and only then make your choice.
When choosing a company, it is better to turn to specialists who can provide good advice. It is desirable that such a company works in different legal areas and has a solid reputation.
We recommend turning to the portal “Pravoved.ru”. Here you will receive an answer to any question in the field of jurisprudence or you can order a detailed consultation. A large number of lawyers collaborating with the service, gives you the opportunity to choose a specialist who suits you.