What Is Outsourcing And Why Is It Needed?

Without employees, there is no existence of an organization at all. In every business or company, there is a necessity to have the right number of employees so that the goals of the company can be achieved. Each and every employee that works in an organization has his own set of tasks that are required to be conducted so that they are able to work as a team and perform their duties towards attaining success. However, it is not always possible for an organization to get the required number of employees all on its own. This is where outsourcing comes into the picture.

• Meaning of outsourcing:

Outsourcing is nothing but a contract that exists between a third party as well as an organization. This term got popular in the U.S. during the 21^st century. It involves activities like hiring of a few employees with the help of a third party, transferring them to another departments and helping the organizations to manage their assets. However, this does not happen always as an outsourced or third party firm is generally on contract basis. If an organization likes the work of the outsourced firm, it continues with the contract and renews it. However, if it doesn’t, it generally pauses or dissolves the contract.

• Uses of outsourcing:

There are various uses of outsourcing to an organization or business firm, out of which following are the two main ones:

• No separate department required:

If an organization has an outsourced party to work for it, for an instance, to handle its human resource works, then there is no need for the firm to have its separate HR department as all the HR related works are performed by the outsourced department itself. Therefore, there is no expense made on building and paying the staff of separate departments within the organization.

• More organized works:

When there is an outsourced party attached to a firm, the organization can focus or have an extensive concentration on its goals, rather than focusing on several other problems or issues within the organization. Therefore, it proves that outsourcing helps in making the organization more organized as all the various issues are solved by the third party allowing the original business firm to focus on its expansion, rather than knowing about what is going on within the different departments. To a certain extent, outsourced parties even handle the conflicts that arise within an organization.

Outsourcing not only focuses on recruitment and selection for the organization but also handles all sorts of other activities for which it is hired. This includes marketing activities, advertising and promotional activities and even the sales department that is outsourced to the third party. All that matters is the organization must keep a watch on the activities conducted by the outsourced party.

About the author:

Sandra D’Souza is a professional blog writer who manages 25 blogs under herself. Every blog that she writes has its own specialty. She has written various positive articles for staff outsourcing.