The phenomenon of outsourcing is growing and is irreversibly affirming both in the private and public sectors. However, it obviously has both advantages and disadvantages.
Among the advantages:
- The company can focus on its key skills
- Cost reduction: i.e. the provision of external services is generally cheaper than hiring specialized personnel in your company
- Time savings: small businesses and especially self-employed workers need a lot of time to familiarize themselves with a new sector. Outsourcing therefore saves time and allows investments to be diverted to other sectors.
- Quality improvement: where the use of outsourcing strategies often translates into quality advantages due to the high degree of specialization of external service providers.
The downside is represented by the disadvantages
- Dependency: outsourcing also means relying on the respective service provider. If, for example, he finds himself in financial difficulties, it can entail consequent costs for your company.
- Loss of consciousness: a consequence of outsourcing is undoubtedly the loss of know-how within the company
- Data protection: the service provider you decide to rely on can logically obtain information on sensitive company data
- Particularly expensive reintegration: outsourcing some activities or tasks, their reintegration into the company requires a lot of time and a significant economic expense in addition to the availability of adequately trained employees.
In fact, outsourcing has become increasingly important and there are many companies that use outsourcing strategies to buy services in an economic way, favoring the internal concentration related to their skills. To ensure the desired success of these measures, it is essential that modern production and logistics concepts are present in the company. The just-in-time production strategy, for example, is one of the best examples. The materials are produced or delivered only when actually necessary for production. Here the company immediately saves on storage costs and must pay those of the material only at the actual moment of production.