Think forward, think outsourcing
Outsourcing is no longer just a buzzword. Business leaders know its now more vital than ever before to understand, and utilize the benefits of outsourcing. Despite the fact that many companies today are outsourcing their products or services to 3rd party companies, other companies are still bias and precious about their structure and products.
Outsourcing benefits
- Risk management: When your staff does not perform to standard you need to follow disciplinary action and at worst let this staff member go and recruit his/her replacement - this process can take months and you also run the risk of being challenged by the CCMA or Labour court.
When the same performance issue is considered with an Outsourcing company its as simple as finding another Outsourcing company, or making the performance/quality issue theirs to address. - Quality assurance: An Outsourcing company is more likely to provide a better product/service than your in-house staff for the simple fact that the Outsourcing company is not part of your company culture and processes (or problems), but has to provide a high quality service regardless, which is governed by you, and Performance & Quality managed by its own Management based on your requirement.
- Cost: Compare the Cost-To-Company of one of your employees vs a similar service provided by an Outsourcing company. You’ll find that you don’t have office space and infrastructure cost, no additional benefits costs like medical aid, parking etc. no cost whilst a staff member is on maternity leave or on strike, and no salaries or retrenchment payout’s during an unexpected economical crisis etc. - hence by outsourcing you only pay for the direct service or product, no hidden or unnecessary costs.
Leave a Reply