Concept in Definition ABC

Outsourcing is a term that belongs to English and that can be translated as outsourcing. It is a strategybusiness that in recent years has spread due to the phenomenon of globalization and the need to optimize resources of companies.

Outsourcing is a way of hiring services from a company, in such a way that a different company is used to manage an aspect or service of the parent entity. Thus, this system is based on the transfer of a process from a business to a supplier.

Outsourcing allows you to optimize tasks by delegating them to a specialized third party

The idea of ​​this tool strategy is based on the organizational transfer of an activity that is not part of the fundamental skills of a institution, transferring said activity to a specialized third party. This occurs because in a highly specialized and globalized context, companies focus on their own resources and delegate to other companies to carry out specific actions.

In outsourcing, the contracted company takes over part of the business. Generally, the company delegates management and operations to an outside provider. In this way, it is intended to achieve a reduction in costs, as well as an optimization of resources and a more agile service.

Adding experience to the organization

The outsourced company provides a experience accredited in a specific area. In this sense, this provider becomes part of the company but without a formal incorporation.

This strategic type of business responds to a business need: competitiveness. As it is very difficult for a company to cope with all the processes related to it, outsourcing is considered a very useful modality.

Outsourcing was consolidated in the 1980s, when large companies began to transfer their information systems to other providers. One of the greatest advantages that this outsourcing system incorporates is a greater functionality of the contracting company.

What is not outsourcing

Outsourcing is different from the traditional relationships of hiring, since in this case the contractor is the owner of the process and controls it in its entirety. In other words, you tell the supplier what you want to do and how you want to do it (for example, the manufacturing of a product). On the other hand, in outsourcing the buyer transfers the property to the supplier, so he does not instruct the supplier on how perform a process or perform a task but allows you to implement a strategy from an initial orientation general.