Skip to main content

Outsourcing in the new era


Outsourcing is the contracting of a company’s specific function or functions to another or other companies for the purpose of efficiency or fast delivery of services. Most a times, the function been outsourced to another organisation is considered non-core function of the contracting company.
Though outsourcing has been in operation as long as the work environment existed, recently, companies embrace the outsourcing model more to carry out narrow functions, like billing, order processing, data entry etc. These processes are considered to be done more effectively, efficiently and less costly by contractors who may be considered to have more specialised personnel, tools and facilities.
Outsourcing takes many forms; organizations still hire service providers to handle a single business process but some organizations outsource whole operations. The most common forms of operations where organisations outsourced wholly are information technology and business process outsourcing. Business process outsourcing includes human resources, finance/accounting, as well as claims processing outsourcing. These outsourcing relationship involve multi-year contracts. Most frequently, the people performing the work internally for the client organisations are transferred into the workforce of the service provider.
Even though this has enhanced the process of globalisation and dysfunctional transactions organisations are striving for, organisations should consider whether they should go for a short-term or long-term relationship in their bid to outsource.
More organisations are outsourcing many of the tasks that are necessary to their business and thus giving them more time to work on development and expansion.  This is a process that requires time for stability. Therefore, organisations going into outsourcing should seek long-term relationship than short-term as it would give them more time to focus on the key developmental issues and expansion programmes. There are several advantages to outsourcing; when an organisation outsource, it essentially create more time for itself to concentrate more on its present strategy as can be seen in the case of telecommunication companies operating the country. 
The telecommunication companies offering mobile (data, voice and video) services in the Nigerian business environment their bid to provide quality services as well as capture the highest market share in the outsource the production of recharge cards to other companies to handle. Rather than involved into the production of recharge cards, these companies concentrated on gaining more market share than having divided attention. The ideal has paid off as these companies are competing favourably with revenue running into millions of dollars on a monthly basis.

Comments

Post a Comment

Popular posts from this blog

Simple Steps in taking a leap in your business

The desire of every business person is to achieve success and make profit. But few actually achieve that feat. So how can you get the need leap needed to spur your business to the next level? Below are important tips for running a successful business: ·          Be open to new and innovative ideas. If you find yourself saying the dreaded words “that’s the way we have always done it and that’s the way we are going to keep doing it”, perhaps you are not as flexible and open as you could be.   And idea that could earn you a lot of money may be in the head of a friend or your employee who feels that you would not be receptive if he/she voiced his suggestion.   Encourage innovative and open thinking. ·          Be completely honest and ethical in every dealing that you have. It is important that you are able to walk down the street with your head held high. Being completely honest and et...
1 comment
Read more

Reasons for most Business Failures

There has been rampant cases of business failures both in the past and at present.  One wondered what is behind this.  Some even make assertions that the business world has collapsed, some says businessmen has joined the political wagon that they have failed to differentiate between business capital and profit. All these assertions have no basis.  You may ask what then has been behind most business failures?  The answer to this question is simple “poor customer relations”. One of the single greatest key to long-term business success can be summed up in three simple words: Quality customer service. Yet as customers, you and I are aware that quality customer service is far too rare these days in spite that many business organisations have invested heavily in this unit but few actually make any headway.  Why is excellent service so rare? There are three reasons for this.             Employees don’t know t...
1 comment
Read more

How to Become a Business Consultant

The business world is full of ups and downs. It is like unstable waters that you never know the direction of its flow. Many people the world over depend on business activities for survival. In fact the economies of all nations depend largely on the activities of businesses. Without business, there will be no economy, without economy there will be no nation, without nations, there will be no existence, without the existence of all of us, there will be no world! Business is life! Business begat money that the entire world depends on. There is no human being under the sun that has never use money or will never use money, which largely accrue as a result of business activities. Becoming a business consultant is a huge money making venture to be in. This is because, everybody as well as businesses needs you to survive or make informed decision. This is an exciting area to be, don’t you think so? You are look upon like a semi-god, you are envied by your peers, you are appreciated by the peop...
2 comments
Read more