What is outsourcing and in which cases is it used?

A company will always require people or allies to carry out its different activities. In this sense, the figure of outsourcing arises, which is a kind of service provider that contributes to the achievement of business objectives.

What is outsourcing?

If we proceed to divide this term into two parts, we can see that it refers to the performance of activities externally. Taking into account this meaning, it can be defined as the subcontracting of a company to a third party for the development of processes.

Such diligences, procedures or other services to be performed by the contracted third party are performed on behalf of the main company, but in favor of others. In this way, it is a sort of extension of the contracting corporation, without being part of it.

But how can that be? Simply, it is a contract of services that one company offers to another. However, this figure is not always very suitable to use, let's see in which cases it is convenient.

Business situations in which outsourcing can be applied

This corporate figure is convenient in the following cases:

1. Need for technology

Not all companies have the necessary capital to be able to open a technology department. Not to mention the adjustments that this requires in the facilities and the hiring of specialized personnel.

This being so, it is much more feasible to enter into a contract with an external company to provide such services. This does not imply additional expenses.

2. Customer service channeling

A very common case is the expansion of an organization, in which it is forced to offer new services and promote products. This leads to an increase in customers and prospects.

Certainly, to handle such volume, it is necessary to be able to count on specialized personnel for customer service. This may require the company to recruit, train and supervise staff.

However, with the implementation of outsourcing, such administrative complications can be avoided. Resulting in much

The most feasible option would be to enter into a contract with another company that provides such services.

3. Assumption of new processes

Following the same line of thought as above, a company may need to make new production commitments to meet demand.

However, this may imply the need to hire specialized personnel to recruit workers. In addition to making quotations for the expansion of structures and the adaptation of new technologies.

Undoubtedly, this would imply a sumptuous investment, which in the short term would not yield a profit. This is where outsourcing is presented as a lifeline.

The outsourced company already has the necessary tools and resources to be able to handle the new production line. The company achieves a solid contracting team, meets the business objectives and satisfies the needs that prevail in the market.

Do you want to know more? Contact us at Linexperts to provide you with a consultancy on another level.