Businesses, particularly those specializing in architecture and engineering, must make outsourcing a standard practice in order to improve performance.
To expound on the idea, the types, benefits, and methods to outsource provide the organization with the knowledge to utilize this beneficial instrument. This utility guarantees that work is optimized. By allocating the resources it has, the company becomes more productive, competitive, and efficient by directing the resources it has to the growth of its main activities.
What is Outsourcing?
According to Francisco Horiuela Morales, outsourcing is “public sector recruiting.” Special note should be made of supply and service contracts, which is a cost-cutting procedure in which an agency hires companies that specialize in providing specific services.
José Carlos Jarillo in his book defines outsourcing as “La Lógica Estratégica” as “the mechanism by which a company stops carrying out an expensive operation and subcontracts it to a third party who assumes the costs of personnel and required assets as well as carrying out the activities or services contracted.”
In essence, Espino-Rodrguez and Padrón-Robaina believe it is a strategic decision that entails contracting certain non-strategic activities or business processes required for the manufacture of goods or the provision of services through agreements or contracts with high-volume companies that can handle said activities or processes, in order to improve in comparison to other companies.
Outsourcing is NOT about other people doing labor, as key phrases like strategic decision, procedure, specialization, shifting functions to third parties, and cost reduction make evident. It’s about having the greatest talent and resources to complete certain jobs so that the company may focus on its core business.