OUTSOURCING EMPLOYEES


Introduction

Outsourcing is a procedure of hiring employees from a third party for a significant period of time. Organizations try to do this mainly to reduce costs or improve efficiency. Sometimes, internal staff could not have the special ability and knowledge to reach the goal of the company. To fill the gap, companies outsourcing employees and try to archive the goals.

Advantages of outsourcing

*can focus skills, expert persons – companies can reach the top level of working. It will improve the performance of the company.

*Access to the larger talent pool- Organizations can select the most suitable and qualified person to the right position to archive their goals.

*Reduce the cost – doing outsourcing company can reduce the cost of recruitment, training and onboarding cost. Outsource services that do not need to engage full time or within the whole year.

*Focusing on core activities- Outsourcing gives company management the ability to clear their mind from the non-core activities and work towards the core ones.

* Increased efficiency- Outsource employees mainly focus only on the task. This may be influenced by the increased efficiency of the company.

 

Disadvantages of outsourcing

*       Risk of exposing internal data – Outsourcing employees can get internal data of the organization and they can give the details to the outside. A confidential situation can be collapse.

*       Hidden cost – Employee supplying agent include some hidden cost to the agreement.

*       Lack of customer focus – sometimes outsource vendor is engaging in many organizations and the vendor can’t give a good solution at the needed time.   

*       Lack of Knowledge of the company culture – Outsourcing people could not have knowledge about the organization and the culture. Behaviours of them are not matched with the internal staff and can be influenced to get conflict within the group.

Global context about outsourcing

Google is a strong implementer of outsourced work to take care of the many projects they continuously deploy and work on. It has been taking advantage of outsourced staff for years. Especially in IT specialists, Software developers and virtual assistant company outsource the employees.

Outsourcing employees in the banking sector in Sri Lanka

In Sri Lanka, most banks doing outsourcing their businesses around Cash management systems, IT tools, Software developing systems, ATM machines security service and cleaning services. The main purpose of doing this is, reduce the cost and increase the efficiency of work.

Conclusion

Outsourcing can bring many benefits to the organization. But there are significant risks and challenges when negotiating and managing outsourcing relationships. Organizations must be talented to mitigate the risks and get benefits from outsourcing and archive their goals.

 

 References

www.thebalancesmb.com. 2018. James Bucki. [ONLINE] Available at: https://www.thebalancesmb.com/what-is-outsourcing-2533662. [Accessed 30 April 2021].

www.flatrockoutsourcing.com. 2020. Mariam Rusishvili. [ONLINE] Available at: https://flatrockoutsourcing.com/advantages-and-disadvantages-outsourcing/. [Accessed 1 May 2021].


 

 

 

 

 

 

 

 

 

 


 

Comments

  1. buddhika30 April 2021 at 21:39

    Outsourcing workers mainly occurs when the adequate workers are not available to do the jobs. Sri Lanka plantation sector is facing major issues due to lack of workers. Therefore they hire workers from third parties. But those workers output is very low and the demands very high salary. This situation is not favorable plantation performance.

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