Importance, Scope and impact of the use of outsourcing

INTRODUCTION TO go back to the past, you probably find that few thought to delegate management functions to third parties would be so healthy for companies and organizations. Since then expressed concerns as the fact that the activities of a company or organization are very delicate, so all it holds, especially when these have been developed, staying in time to face the different challenges that scenarios change in which they operate have therefore delegated to other strange was questionable, however, with the technological revolution and globalization, created a highly competitive market that management did not have time to cover all areas of the Organization, as was concentrate on the vital areas of the same, such as decision making, planning and management itself. This led to manifest itself a new administrative tool that has given way to represent and today it is very important to consider, taking into account, its scope, impact, benefits and obstacles, disadvantages. There is a new concept, which seeks to engage the organization, almost exclusively, which would ensure the survival of the same in the future, and this is Outsourcing.

The topic of "Outsourcing? is increasingly becoming the subject of increased interest by management analysts, academics, executives in various industries, managers of all types of organizations and even the media's "Outsourcing? allows companies to focus on its core areas, and giving to specialized companies, the peripheral activities or support, that is asserting itself as one of the formulas considered by companies to manage their business DEFINITION AND BRIEF BACKGROUND Definition "is the outsourcing production processes, administrative or support in order to optimize the efficiency, effectiveness and / or quality in the operations of a company.? Background Originally, outsourcing was focused on the indirect outsourcing units (staff, utilities, cleaning, courier services, insurance, etc. ..) to the operations of companies. The current trend is to outsource as much as possible, to ensure competitiveness in global markets. "The Revolution" Outsourcing? market is defined in the year 1989, when Eastman Kodak moment yielded to third parties your data center and telecommunications system (ISSC), a company created by IBM to provide computer services, including those of "Outsourcing? .

According to a study by Andersen Consulting, over 70% of organizations have raised the "Outsourcing? executive committee level, which foresees a clear role for this method of management.

A sample of this level of acceptance is a recent report by Ovum Ltd. which estimates growth market "Outsourcing? around 20% annually over the next few years. Today considered a good business policy focus, rather than identifying and developing products, identifying and developing the skills that allow a certain organization to outperform their competitors. Many financial institutions for example, have concluded that their key skills are not related to the financial expertise, but with responsibility for customer relations. Industrial companies have come to the conclusion that they have to create core competencies around customer service. Power companies have found their key skills are not only production technology but the marketing of energy in a competitive level. BASIC CONSIDERATIONS AND SCOPE Consider that when you try to outsource some of the tasks of the company, makes lse advantage of economies of scale produced by the functional specialization of the same, taking into account, which is expensive to hire the best experts when we have much work in order to occupy all the time stipulated in the contract, although we find it almost essential or at least very necessary to use its powers.

Although the unit price of this contract is greater than we once had with their own staff, the cost function is smaller for the use of fewer units in relation to the total, plus the quality / price ratio in these cases appears more high. Following these principles, we begin to outsource high-level services, so companies are born and engineering advice, since not all companies need these high-level positions in full-time or full days after the the year and specific applications, the profitability of these subcontracts, was higher than the classical recruiting staff. These companies are born and computer consulting body shopping, the latter being companies that outsource man / hours of highly specialized staff generally very competitive prices can usually ensure that while levels of outsourcing companies are not high, the needs of control either, but as they increase up to strategic levels, someone from the company with real organizational skills and knowledge of tools, they must control the integration of the outsourced functions, bearing in mind that if this figure does not exist, what is it More commonly, the company should undertake the task of acquiring these skills and knowledge, either through external recruitment or via internal training, always depending on the time available for implementation of projects, before undertaking the outsourcing of first and second level.

What happens in some way by another mode of Outsourcing consulting firms such as human resources. Summarizing all the above. It may be noted that Outsourcing is when an organization receives information technology or information technology services of an external company, business or procurement information system functions. That is, external services to the organization that enabled businesses, but these are responsible for their own administration. In other words, is the practice of transferring the planning, management and production of certain functions to independent third parties. Impact of Outsourcing. 1. Ensure the effectiveness of outsourced processes. 2. Focus personnel to the business of the company. 3. Implement discipline and indicators. 4. Simplify the management of the company. 5. Contain costs:. - Knowing actual costs and ensure adherence to budgets, without absorbing internal errors. .- Optimize resource utilization. 6. Cost reduction (up to 40%) - cheaper services. - Better quality in services. - Reduction of staff. - Better concentration on core business. 7. Increasing benefits: They're not only reducing costs but also in improving the delivery of business services and technology.

8 · The Capital to the Company's strategic point: It is based mainly concentrate capital in areas offering a real competition, ie market research, product development and distribution of them. 9 · Cost Reduction: It consists of minimizing the costs and investments without losing the ability to launch new products on the market. 10 · Responsibility and Control: The first thing to do with running a business is to assess under what conditions the company's position in the market, well, OK, is regular. Then assess whether there is competition in other similar businesses which are better located or in the same position. Determine if competing firms within a newly created there because they have a lower cost burden, with fewer staff, fewer material resources, less time in the market, indicating some flexibility. CONCLUSIONS The modern management Outsourcing should be considered a means, a tool, not a person. It is therefore important to set you within border as possible, in principle often violated in the rush to tie the supplier's business and customer to solve their operational problems with a magic wand.

The long history of well exploited Outsourcing helps to keep expectations firmly anchored on both sides as far as practicable. There is already a product knowledge base of industry experience in recent designs. It allows to pinpoint the chances of success of an outsourcing transaction based on the current conditions of both the client and the supplier.

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