Outsourcing is the process through which one business contracts with another business to offer services that can be undertaken by employees in-house. Normally, the outsourced tasks could be executed by the business itself. However, there are advantages that outsourcing can bring to a company (Heric & Singh, 2010). The article introduces the term Nearshore outsourcing. According to the author, Nearshoring is when a company outsources within nearby areas; that is easy to access by short travel or even telephone. According to the article, nearly $130 Billion is used by companies to outsource services annually. Some of the services outsourced include; system development, security monitoring, disaster, and backup recovery.
Heric and Singh (2010) assert that there are several vendor options, offshore locations, and capability sourcing models that did not exist five to ten years ago. This creates leeway for outsourcing to developing faster. The two authors demonstrate that they have recognized that establishing offshore teams locally with autonomous charters can improve the long-term successes of companies.
The authors indicate that leading companies in the world employ capability-sourcing in order to set up five strategic capabilities. These strategies comprise tapping into international talent, establishing partnerships that capture the value and reduce risk, seizing new opportunities in local markets, marketing offerings faster, and boosting innovation, finally disrupting conventional business models.
Hart (2011) indicates that it is worth remembering that an outsourcing relationship that is successful is something businesses have to work at and understand. He further adds that there is usually a risk that without appropriate assistance, these organizations could make a mistake and end up losing. According to Hart, in times when there is more support from the government to promote business investments, many players in the business sector look for ways that can help them stay ahead of the competition, and this is an aspect of outsourcing. This is because outsourcing brings more innovation and effectiveness into their businesses.
According to Immel (2012) outsourcing education is required to sharpen the skills of employees in the field of outsourcing. This is based on the fact that as many organizations learn the significance of working with other strategic partners in order to attain success, it has never been vital for businesses to understand what comes with outsourcing.
For instance, Hart (2011) argues that by providing recognized professional development in the field of outsourcing, programs such as NOA Pathway help to set up recognizable marks for quality in the industry. In addition, such programs have been tailored to allow concerned parties to learn on-their-job. This implies that they can add some extra practical value to their business as they learn.
Immel (2012) indicates that, at Atlas Copco, one of the most influential services is training clients on using compressed air correctly. This can be achieved if all employees are trained. Immel (2012) argues that many manufacturers, today, look up to their suppliers for help in nearly all things, ranging from training to system monitoring. According to her, Atlas Copco provides outsourcing services by involving in several monitoring and auditing services, as well as training its clients on-site.
In conclusion, there are several reasons that prompt businesses to outsource jobs and services. However, the most outstanding advantage is tied to the fact that it normally saves funds and assists in putting the business back on the competitive edge.
Hart, M. (2011). Outsourcing training takes a slice of the pie. Web.
Heric, M., & Singh, B. (2010). Outsourcing Can Do Much More Than Just Cut Costs. Web.
Immel, R. (2012). Outsourcing Education For The Well-Trained Employee. Web.