What is outsourcing?
Outsourcing in other terms is also known as a sub contract. The term is usually used in relation to companies. Companies handing over activities or work that can be done by them to another company is known as outsourcing. The act can be done either by an individual or a firm.
How it is done
Usually large companies would get this outsourcing done by an advertising recruitment Manchester process. Once they have advertised their expectations, nature of the job, terms and conditions, salary and other specific requirements they would immediately higher a person or company to provide services to them through digital recruitment London. This is a lot effective as less time is spent on looking for a worthy employee. The digital method may work in our favour but it does have negative effects as well. Another company could get your employee for a much higher price through the same method. Therefore, one should always be tactful and have proper contract methods done legally before hiring outsourcing companies.
Why is it done?
If you are wondering as to why a company would do such a thing, then the answer is cost management. By outsourcing a large company work to a much smaller company in another country the larger company would not have to pay a large sum to the outsourced company. This way the cost is effective and there would be an increase in production. The aim is to target low develop countries such as Uganda, Somalia and so on where the labour cost is extremely low. Further the enthusiasm in the workers of these sub contracted companies are surprisingly high.
What companies can be outsourced
Not many companies can outsource their work to other companies. But outsourcing can be usually seen in fields such as information technology, management, installation, network servicing, human resource and business analysis as these fields are in bigger scale, largely expanded worldwide and would need many man power.
The black and white side of outsourcing
While outsourcing jobs can be looked as a development in business it can also be a downfall for the economy of a country. Large companies by outsourcing their work to small companies or under developed countries, they are depriving the employee opportunities of their people within the country. This can be seen as a major drawback of the outsourcing process. A suggestion would be therefore that outsourcing a company’s work to a firm which is not within their country, instead sub contract the work to a firm within the country.