What Outsourcing for?
To maximize efficiency of functions execution on condition that expenses on their performance are minimized,
heads of enterprises face the need to rank functions from the viewpoint of their priority for the organization.
Criteria of such ranking are determined by the company’s management on the basis of their own judgments or
opinions of external experts. The ranking of business functions may result in taking a decision to outsource some.
Outsourcing is a transfer of some functions to external executers. In its essence, outsourcing reminds of subcontracting,
with the only distinction that subcontracting is used for activities in the framework of a certain contract while
outsourcing transfers functions pertaining to daily activity. The following directions of outsourcing have become
most popular recently:
- accounting;
- advertising and marketing activity;
- local networks services;
- software development
and other services in the sphere of information technologies.
It must be noted that, besides pure administrative functions, organizations have recently started to outsource functions,
directly relating to production.
Outsourcing provides an opportunity to release resources and therefore to reduce expenses on management and production
and/or to redirect recourses to implementation of more important business functions of the organization. The key
criterion while deciding to outsource is estimation of the instrument’s efficiency. Such estimation should be carried
out taking into account individual peculiarities of each organization and should include not only real savings account
(due to reduction of resources consuming) but also hidden savings account connected, above all, with the reduction of
objects, subject to management and control.
In other words it is important to control whether outsourcing brings positive results. It should be noted that positive
results may imply direct savings of resources spent on one or another function, as well as improvement in quality of
functions performance. Monitoring of outsourcing efficiency makes it possible for management to keep their eyes on the
business and to stop the practice in case expenses on payment to outsourcers exceed the sum of savings derived from
dropping the function. When we are talking about expediency of outsourcing, we should remember, that as well as in
case of other management instruments, there is no uniform recipe for all organizations and in each case outsourcing
efficiency depends on individual peculiarities of the organization and conditions on the market.
Not only customers face difficulties in management and control, the most difficult organizational work falls on the
outsourcing company. It should allocate tasks correctly, ensure efficient and explicit work with its remote clients,
and respond to client’s needs quickly and adequately.
A lot of companies create and adopt their own project management systems but only the most professional solutions
ensure comfortable work between service vendors and customers and help to organize the company’s management structure.
The IdeveloperNetwork Company has been operating on the market of remote development of computer software for 8 years.
During this time the team formed a balanced system guaranteeing high quality of services and tasks implementation speed.
The staff of the company constantly improves their professional skills, as well as the process of software remote
development.
According to the company’s president Andre Green, the key advantage in the company’s management is a well coordinated
and exact work of its personnel and a correctly built system of projects implementation control ensuring high quality
of code and short terms of development.
