Business

Background of increasing demand for outsourcing

Background of increasing demand for outsourcing

Currently, the demand for outsourcing is increasing in all industries, and there are two factors behind it.

Expansion of diversified management

The first background is the “expansion of diversified management.”

In recent years, an increasing number of companies are aiming for diversified management for the purpose of effectively utilizing the technology

and know-how possessed in pursuit of further growth of their own company and the purpose of securing a source of income.

However, developing a new business does not reduce the amount of existing work,

so it is necessary to maintain the quality of conventional in-house work and at the same time improve efficiency.

For this reason, some operations are being outsourced so that employees can concentrate on the tasks that they should prioritize.

Lack of human resources

The second background is “human resources shortage”.

Due to the decrease in young workers due to the declining birthrate, the number of employees that each company can hire is limited, but the amount of work is increasing due to the diversification of businesses.

As a result, an increasing number of companies have outsourced some operations in order to supplement the shortage of human resources and reduce overtime hours for employees.

Benefits of outsourcing

Now, I will explain the benefits that companies can obtain by actually outsourcing their business from the following four perspectives.

Strengthen corporate competitiveness

In order for a company to become more competitive, it is important to provide its customers with profits that outperform their competitors, such as its unique know-how and skills.

In order to provide such valuable services, it is necessary to concentrate many resources on service development and growth and devote costs, but it takes a lot of time to hire and develop new human resources. And costs.

Therefore, by outsourcing non-core tasks and focusing on tasks that should concentrate on employee resources, it is possible to solve the problem of human resources and increase competitiveness.

Work efficiency and prevention of tissue bloat

The outsourced company (outsourcer) that outsources the business has specialized know-how in the business.

Therefore, rather than in-house production of all operations in-house, we can aim to improve the quality of operations and reduce costs by outsourcing some operations to specialized companies.

Outsourcing some operations also has the advantage of preventing the organization from growing as the business expands.

Controlling human resources costs and fixed costs

By outsourcing, it is possible to change the fixed costs such as salaries and capital investment costs

for employees depending on the situation of the company such as an increase or decrease in sales.

This not only increases the degree of freedom regarding the placement of employees

but also has the advantage of making effective use of management assets.

Disadvantages and precautions of outsourcing

So far, we have explained the advantages and demands of outsourcing, but there are also disadvantages and precautions for outsourcing.

Let’s outsource the business appropriately, paying attention to the following points.

Know-how is not accumulated in-house

Outsourcing a job does not allow employees to gain experience with the job

and therefore cannot accumulate know-how within the company.

It is recommended that you keep track of the information to some extent,

considering the risk that the outsourced company will suddenly go bankrupt, as well as if there is a business that you are planning to make in-house. To do.

There is a risk of information leakage

Some of our business is related to personal information, such as personnel business and business that handles customer information.

We must also consider the risk of confidential information leaking to the outside.

If you outsource your work, check the security level of the outsourcer before deciding whether to outsource.

It is difficult to judge the appropriate cost

Most of the work that we consider outsourcing is work that we have never dealt with in-house.

It should be noted that it may not be possible to determine the

appropriate cost for such work in-house, and opening the lid may make it less cost-effective.

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