Outsourcing cost-effectiveness
Introduction: Outsourcing - it pays off to everyone.
Outsourcing has become extremely popular in recent years because it brings substantial savings and the quality of services offered has increased. It became a pronounced trend, when the development of the Internet and personal computers had enabled the integration of enterprise information systems with external business entities. In particular, sectors such as IT, logistical, consulting, legal, accounting, security and cleaning services are almost entirely outsourced. Currently the most popular form of outsourcing is the use of software in a SaaS model.
By outsourcing, company gains:
- Lower operational costs and shorter times for orders completion - usually prices of services provided by business entities that specialize in particular activity are lower, because the development costs and fixed costs are divided unto multiple enterprises. Specialized company makes better use of human resources and infrastructure.
Example: Please compare the cost of creating your own operating system (i.e. Linux or Windows) with the cost of buying ready-made CD in the store. - Higher quality of services - a company specializing in a certain kind of activity can devote a greater portion of their income on development in just one direction. Specialized company handles many entities, so it can devote more resources to development on this single field, while the unit cost of handling a single entity is lower.
Example: Please build a mobile phone, which will be equally small, stylish and modern, like the ones offered in the mobile operator showroom. Would you manage to achieve the final price this low? - Greater flexibility and cost control - the outsourcing agreement links two (or more) business entities with predetermined rules, terms and conditions. Your company can fully control the spending. In the case of operations executed "in house" (within your own company), no one can assure you that the work is done in an optimal manner and within planned budget. Besides, the property commits you for years, but you are not able to determine whether what you buy today will be sufficient in 5 years, when the company will be ten times larger, or whether you will be able to upkeep it, when sales sink three times.
Example: Please compare the cost of one employee dismissal with change of your store security service. Why do you think large companies sold their leisure resorts?
Your business every day make good use of outsourcing, perhaps even without you knowing of it and feeling intuitively that this is the optimal solution.
Most companies use:
- Complete operating system and financial accounting software, instead of creating them by themselves,
- Courier services and postal services, instead of delivering the packages on their own,
- Banks, instead of collecting money from customers and escorting them to own cash registers,
- Calls, instead of sending letters and building their own communication infrastructure,
- Security and cleaning services, instead of hiring additional employees,
- Accounting, consulting, legal and health care services, instead of creating their own departments,
- Rented premises, instead of building / buying, administering and maintaining their own building,
- Printing services, instead of printing them by themselves,
- Prepared meals and catering companies, instead of cooking on their own.
If you think deeper about the cited examples, you will realize that outsourcing is really the essence of modern economics. A few years ago many companies had their own web servers, maintained by full-time professionals. This solution quickly lost with specialized providers of hosting services. Today no one is considering the purchase of own server without adequate technological and financial facilities.
Why not take advantage of this experience and have a comprehensive service handled by specialized entity? Would it not be easier to control costs and ensure reliability? If you do not need an orchard to eat an apple, do you really need your own sophisticated technical department in order to sell on-line? What does your company do - it sells or provide Internet services?
That's why we, the IdoSell.com company, rely on the principles of comprehensive outsourcing services in a SaaS model. We want our customers to feel they can trust us, because we take full responsibility for their fate - both good and the bad.