Outsourcing as a way to minimize enterprise costs
Outsourcing has been functioning for a long time and is the main economic instrument in developed countries such as the USA, Japan, etc. Outsourcing has taken its place in business in central Russia. But the question remains “sluggish” development in the Far East. Talking with company executives, you can find the answer to this question. Many medium-sized business managers do not trust this tool, or simply do not know about its useful properties. It is important to understand that while this issue remains open, many companies lose their profits and their business either stagnates or regresses. The topic of outsourcing has become very relevant for discussion in the current situation in the country, despite its development in the progressive countries of the world, there are opinions about the usefulness of this tool, and, conversely, about its ambiguity for the enterprise. Outsourcing is the organization’s transfer of certain production functions or business processes to service an outside organization that specializes in the desired area. But, in contrast to support, which has a one-time nature, functions for supporting the performance of individual systems on the basis of a permanent contract (for a period of 1 year) are transferred to Outsourcing.
The usefulness of this financial instrument is definitely not disputable. And at an outsourcing, you can keep an entire department in a company, not to mention the fact that you can build a company in which the departments are fully outsourced, but here the company faces coordination problems between the departments and the professionalism of the management team. Benefit? Yes. Based on the research, attracting staff to outsourcing, and replacing them with staff on the wages that staff members receive, can come in twice as many employees in outsourcing. You get professional employees, and you get results. At the same time, you do not care about staff motivation, do not think about the sick leave of your employees - all this is done by the employer of the outsourcing agency. Often, outsourcing take sales. And this is really an effective investment and a competent move. By outsourcing the sales department, you get a big conversion from customer interactions and, consequently, more sales of your products or services. As for now, the best outsourcing service - WOW24-7. It is a global outsourced customer service.
According to statistics, regular sales managers because of the fear of failures and low motivation in sales, make 20-30 calls per working day, when the outsourcing manager makes about 100 calls, making more sales to the company. In general, most office managers who work for a salary in companies, by and large, do not fulfill their obligations and simply occupy a workplace in an office. This happens not because they are bad workers, but because of the specifics and costs of work. The profession itself involves stressful situations every day, it is not only the first call for arrival at work, but also the work itself with objections, where there are many technicians, in order to convince the client and force him to change his point of view regarding the product or service of the organization on behalf of which he's calling. The advantage of the manager in outsourcing is that in most cases they work for a percentage of sales, which makes them work for the result, and they also know a lot of tools to deal with objections, and most importantly, they know how to use them.
Managers that the company takes in outsourcing is a very effective tool for increasing sales, as these people have a certain sales experience and are focused on the results of each call, visit, letter, etc. But there are also some risks with the transfer of business processes to outside organizations, mainly due to the incompetence of many outsourcing companies, their limited experience, and lack of knowledge of the industry in which to work. There is also a risk of information leakage, but this can be corrected with a simple clause in a non-disclosure agreement about company data. But all the risks that may arise can be solved: choose a more competent service provider by following the reviews or asking him for a test mode of his services; and competent management of the company. Before making a decision on outsourcing, the firm must decide what will be more profitable for it - to produce this service, business process, or the product itself, or to entrust a third-party organization.
Firms decide to outsource on the basis of both economic and non-economic considerations. One of the non-economic factors is whether the activity under consideration is strategic or standard. The main source of cost savings through outsourcing is to improve the efficiency of the enterprise as a whole and the opportunity to release the appropriate organizational, financial and human resources to develop new areas, or focus on existing ones that require increased attention. Outsourcing allows you to replace part of the fixed costs in the variables, which at a low load of enterprise units is clearly justified. It should also be understood that the firm that provides outsourcing services is a center of knowledge and experience and can perform the corresponding functions professionally, unlike individual enterprises. Outsourcing is often seen as a tool to reduce costs, as well as a way to enable an enterprise to concentrate on a small number of activities. Therefore, of course, this tool can and should be considered by companies as an event to improve the efficiency of their activities.
The usefulness of this financial instrument is definitely not disputable. And at an outsourcing, you can keep an entire department in a company, not to mention the fact that you can build a company in which the departments are fully outsourced, but here the company faces coordination problems between the departments and the professionalism of the management team. Benefit? Yes. Based on the research, attracting staff to outsourcing, and replacing them with staff on the wages that staff members receive, can come in twice as many employees in outsourcing. You get professional employees, and you get results. At the same time, you do not care about staff motivation, do not think about the sick leave of your employees - all this is done by the employer of the outsourcing agency. Often, outsourcing take sales. And this is really an effective investment and a competent move. By outsourcing the sales department, you get a big conversion from customer interactions and, consequently, more sales of your products or services. As for now, the best outsourcing service - WOW24-7. It is a global outsourced customer service.
According to statistics, regular sales managers because of the fear of failures and low motivation in sales, make 20-30 calls per working day, when the outsourcing manager makes about 100 calls, making more sales to the company. In general, most office managers who work for a salary in companies, by and large, do not fulfill their obligations and simply occupy a workplace in an office. This happens not because they are bad workers, but because of the specifics and costs of work. The profession itself involves stressful situations every day, it is not only the first call for arrival at work, but also the work itself with objections, where there are many technicians, in order to convince the client and force him to change his point of view regarding the product or service of the organization on behalf of which he's calling. The advantage of the manager in outsourcing is that in most cases they work for a percentage of sales, which makes them work for the result, and they also know a lot of tools to deal with objections, and most importantly, they know how to use them.
Managers that the company takes in outsourcing is a very effective tool for increasing sales, as these people have a certain sales experience and are focused on the results of each call, visit, letter, etc. But there are also some risks with the transfer of business processes to outside organizations, mainly due to the incompetence of many outsourcing companies, their limited experience, and lack of knowledge of the industry in which to work. There is also a risk of information leakage, but this can be corrected with a simple clause in a non-disclosure agreement about company data. But all the risks that may arise can be solved: choose a more competent service provider by following the reviews or asking him for a test mode of his services; and competent management of the company. Before making a decision on outsourcing, the firm must decide what will be more profitable for it - to produce this service, business process, or the product itself, or to entrust a third-party organization.
Firms decide to outsource on the basis of both economic and non-economic considerations. One of the non-economic factors is whether the activity under consideration is strategic or standard. The main source of cost savings through outsourcing is to improve the efficiency of the enterprise as a whole and the opportunity to release the appropriate organizational, financial and human resources to develop new areas, or focus on existing ones that require increased attention. Outsourcing allows you to replace part of the fixed costs in the variables, which at a low load of enterprise units is clearly justified. It should also be understood that the firm that provides outsourcing services is a center of knowledge and experience and can perform the corresponding functions professionally, unlike individual enterprises. Outsourcing is often seen as a tool to reduce costs, as well as a way to enable an enterprise to concentrate on a small number of activities. Therefore, of course, this tool can and should be considered by companies as an event to improve the efficiency of their activities.
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