Outsourcing is no longer just a buzzword. As a business leader / decision-maker it is now more vital than ever that you understand, and utilize the benefits of outsourcing.
Despite the fact that many companies are thinking forward and outsourcing their products or services to 3rd party suppliers, other companies are still bias and precious about their structure and products.
If you are under-capacity, trying to cut operational cost or just need an additional service offering but don't want to incur the expenses then outsourcing is the proven answer.
Risk management:
When your staff does not perform to standard you need to follow disciplinary action and at worst let this staff member go and recruit his/her replacement - this process can take months and you also run the risk of being challenged by the CCMA or Labour court.
When the same performance issue is considered with an Outsourcing company its as simple as finding another Outsourcing company, or making the performance/quality issue theirs to address.
Quality assurance:
An Outsourcing company is likely to provide an equal or better product/service than your in-house staff for the simple reason that the Outsourcing company is not part of your company culture and processes (or problems), but has to provide a high quality service regardless, which is governed by you, and Performance & Quality managed by its own Management based on your requirement.
Cost:
Compare the Cost-To-Company of one of your employees vs a similar service provided by an Outsourcing company. You'll find that you won't have office space or infrastructure cost, no additional benefits costs like medical aid, parking etc. and no cost whilst a staff member is on maternity leave or on strike, and no salaries or retrenchment payout's during an unexpected economical crisis etc. - hence by outsourcing you only pay for the direct service or product, no hidden or unnecessary costs...See the cost comparison
Like most things, outsourcing also has its disadvantages, but implemented and managed correctly can have substantial benefits to you. Choosing the right Outsource partner is key in this strategy, ChilliHR understands the importance of fitting in with your corporate structure and processes whether you are a small business or large corporation.
Outsourcing non-revenue generating functions, such as Human Resources is a good start in deploying a global cost reduction strategy...see the cost comparison
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