Tuesday, 17 September 2013

Modern Administrative Solution: Outsourcing

In business, outsourcing is the contracting out of a business process to a third-party (Wikipedia). It is the act of using an outside agency to operate a function previously carried out within a company.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

The main objective of the company is to reduce direct costs based on a subcontracting or outsourcing of services that will not affect the main activities of the company. It is an alternative that achieves high performance in specific areas, thereby obtaining time- and cost- effective results. When companies outsource, the major problem that they may face is finding where to start. Tasks are determined by the type of responsibilities that can be outsourced. In terms of management, we can separate tasks that can be delegated into two categories, divided according to their level of impact on the company and its potential as a key to success.

1 - Basic Tasks. These tasks often revolve around managing documents or files and are low-risk activities for the company. We are talking about activities such as: Writing, design or proofreading documents; Presentations, newsletters and brochures; Online research, data collection, analysis of competition; and, Spreadsheets.

2 - Specialty Tasks. These tasks are most often outsourced by small businesses as they do not have the experience or skills needed to carry them out every day. These may include: Accounting and economic consulting; Marketing; Legal consulting.


Benefits and Risks of Outsourcing

Benefits greatly outnumber the risks when outsourcing administration support. Some of the main advantages include: minimization of investment and cost reduction, greater flexibility within the organization, more efficient operations, better control and greater security and faster development of business objectives. Some risks may include: unsuitable negotiation of a contract, difficult choice of provider, excessive dependence on external companies, plus confidentiality can be threatened.



The need for trust and reliability by the hiring company is clear. Virtual assistants understand this and are open for communication with their clients at any moment. At AMG VA Services we provide valuable assistance in tasks ranging from administration to design and marketing to social media management. The internet and the advancement of all methods of communication and transmission of data is a point in favour for us, outsourcing companies. It allows for a connection and immediate contact with our clients.


In summary, delegation and outsourcing of some assignments will allow businesses to focus on their business goals and most important activities. While the reasons may vary for a company to undertake outsourcing, the success is visible among corporations where outsourcing has become a core component of day to day business procedures and strategies.



2 comments:

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  2. About advantages and disadvantages of outsourcing, this post below is also very useful.

    Pros and Cons of outsourcing

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