Which Type of Outsourcing is Right for You
Are you thinking of the outsourcing solutions available in the market and which will suit your business needs?
Outsourcing refers to any supplemental activity a business undertakes with a third-party business to perform certain tasks rather than the company performing it itself. Simply put, it is the process of acquiring resources through an external party.
Outsourcing can help companies improve their efficiency and save a lot of money. Even the most menial tasks can bring a positive change. By doing so, the company in question can avoid hiring new permanent employees or burdening its existing workforce. Agents are contracted outside to perform certain tasks instead of directly hiring new employees or assigning those tasks to existing tasks. It’s a common business practice to lower operational costs and streamline operations. For many businesses, outsourcing solves many problems and business owners do not have time to solve all these problems. Hiring employees to solve those problems could be a better solution than outsourcing. But when it comes to outsourcing services, skills, and expertise even in handling common tasks, it’s usually worth considering particularly if you need help to solve business problems.
There are many benefits of outsourcing. As mentioned, a company stands to reduce costs and increase productivity when done properly and onshore employees would have more time to focus on essential tasks. Companies that outsource through Cybalink Solutions enjoy additional benefits. For example, Cybalink Solutions specialises in engineering and construction services that is uniquely different from the usual offshoring providers that offer one-size-fits-all solutions. With this catered niche and specialisation, you are sure to find the most qualified employees for your company.
In the past, businesses typically outsourced their common office activities or back-office operations. Companies are now seeking out outsourcing solutions to enhance their business goals and strategy to beat out the competition. Led by technology and cost cutting measures, outsourcing today is fundamentally transforming traditional outsourcing models.
The types of outsourcing providers depend on the type of the services they provide and on the needs of your business. These types of outsourcing solutions share a common goal which is to provide you access to expert professionals and advanced technology. Business Process Outsourcing or BPO, for example, increases the focus of outsourcing firms on their core business activities, thereby, increasing production that is also efficient. In this article, we will be discussing the different types of outsourcing providers.
Types of Outsourcing
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Business Process Outsourcing
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Manufacturing Outsourcing
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Process-Specific Outsourcing
- Legal Process Outsourcing (LPO): This category includes all legalities, including litigation and regulatory compliance.
- Knowledge Process Outsourcing (KPO): Outsourcing knowledge development for product improvements, such as research and data analysis, is covered in this category.
- Recruitment Process Outsourcing (RPO): RPO covers all areas of outsourced recruiting, including posting management, applicant monitoring, and evaluation.”
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Project-Based Outsourcing
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Multi-sourcing
“Business Process Outsourcing (BPO) is a business strategy in which a company hires an outside service provider to handle an important company function or task.” BPO helps the company with ordinary business tasks, such as administration, correspondence, and scheduling. Businesses choose BPO as an outsourcing strategy for their back-office operations such as accounting, payment processing, IT services, human resources, regulatory compliance, and quality assurance to outside experts and also, they can outsource front office functions such as customer or technical support, sales, and marketing. This type of outsourcing provides businesses with various advantages, such as timely and accurate reporting, increased productivity, and the capacity to quickly transfer resources.
Manufacturing outsourcing simply refers to having other companies with the right machinery and tools to build product for mass production. Companies opted for this type of manufacturing to fray cost which can be extremely expensive if the company manufacture their own products. Raw materials and capital can be expensive, and salaries of factory workers can also put a dent in your profits. However, if you let other companies do the manufacturing process for your business, you can significantly reduce your cost.
This type of outsourcing enables you to contact a certain provider for a specialised service. “Process-specific outsourcing refers to outsourcing processes that are customised to a specific job or internal procedure.” As of late, it is a common practice to hire a third-party company with a specific expertise. The types of process-specific outsourcing are:
When companies are dealing with several projects, it can consume time, drain resources, and put burden on the team resulting to the quality of the output. Thus, businesses can outsource a project to an external service provider. Project-based outsourcing generate savings by limiting the amount of time required to complete the project. In addition, you can get people with specialised expertise externally without pulling in from your own team. Come to think of it, hiring a specialist for your project will result in quicker turnaround time and also, project-based outsourcing helps you onboard external experts immediately. There is no need to train them to your project since they are already experts in the field.
Multi-sourcing is when a business with highly specialised and complex operations outsources their needs to various external providers and then aggregating these providers to create a final product. Multi-sourcing is more concerned with outcomes by partnering with other providers. It requires a comprehensive strategy and a network of partners and providers to deal with high specialisation and complexity.
Why Outsourcing with Cybalink Solutions?
There are many outsourcing types with its corresponding outsourcing partners available on the market. The advantage you look out for when outsourcing team members are cost savings and improved efficiency. Ultimately, find an outsourcing partner you can trust and that’s where Cybalink Solutions comes in.
With Cybalink Solutions, you will be able to scale up quickly by getting the right resources, processes, and technological advantages. We will give you the best optimised solution so you will only focus on delighting your customers. With us at your side, front or back, we will help you rise above the competition.
References
- Amy Pattinson, “Types of Outsourcing Providers,” invensis.net/blog/types-of-outsourcing-providers/
- __, “Different Types of Outsourcing Explained,” airisx.com/different-types-of-outsourcing-explained/
- __, “Outsourcing: Types of Outsourcing,” nibusinessinfo.co.uk/content/types-outsourcing-services
- __, “Different Types of Outsourcing that you need to know,” outsourceaccelerator.com/articles/different-types-of-outsourcing-that-you-need-to-know/
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