2 Flashcards
Advantages of outsourcing
1) Focus on core business
2) reduction of investment needs
3) improvement of quality
4) maintenance costs
5) increasing flexibility
6) increasing in operating efficiency
Disadvantages of outsourcing
- loss of independence
- less flexibility in managing functions (external entities)
- decrease in employee motivation
- leakage of data
- the risk that partners will not ensure the appropriate quality
A concept opposite to outsourcing
Insourcing
separation of certain production and service departments and their transfer abroad.
Offshoring
incorporating back into the organizational structure of the parent company functions of significant importance, which were previously commissioned to be performed by an external entity. This happens when outsourcing decisions have turned out to be inappropriate over time.
Insourcing
- a separate part of the activity is transferred to an independent business entity.
Contract outsourcing
- consists in separating a specific area (function) from an organization that is capable of operating independently on the market as a daughter company.
Capital outsourcing
is used when the demand for employees increases periodically. An external company delegates its employees to work for the client.
Employee leasing
takeover of the payroll service outsourcing company. This allows for the improvement of administrative processes.
Payroll outsourcing
external companies take over the administration of HR functions, recruitment, organization of training
HR functions outsourcing
this is the receipt, processing, storage and transfer of information.
(The outsourcing company creates, in accordance with the needs of the commissioning organization, a distribution system and sharing information processed in a way that allows immediate access to it to authorized persons in the expected form.)
Outsourcing in information processing and management
offers, among others access to a common computer network of many organizations, system and network management, personal computer environment, Internet access, creation and updating of websites
Internet outsourcing
includes commissioning the implementation and operation of modern technologies in an organization.
(Entrusting IT infrastructure management to an external company enables application development and constant access to software and professionals in this field without large investments.
It ensures uninterrupted operation of the IT system.)
IT outsourcing
consists in delivering end-to-end end-to- end e-business solutions from external specialists. Professional database services.
e-commerce outsourcing
Customer Relationship Management, that is customer relationship management. It involves establishing and / or maintaining contact with the client on behalf of the organization.
CRM outsourcing
entrusting the management and operation of selected business processes to a specialized external company.
Business process outsourcing
Outsourcing definition
The process of separating the functions performed by them from the organizational structure of the parent enterprise and transferring them to other economic entities for implementation (M. Trocki).
The essence of outsourcing
If there is something we cannot do more efficiently, cheaper and better than our competitors, there is no point in doing it. We should hire someone to do the job better than us.
characterized by distrust towards employees. The assumption of this style is that only a firm managerial attitude can bring specific results to the company. Penalties are usually applied to subordinates, and decisions are made by the manager without consulting employees. Thanks to such activities, the number of products produced by the enterprise increases, but the quality of the activities performed decreases.
Autocratic style
characterized by great independence of employees. The manager gives his subordinates complete freedom, he interferes in the work of the group only when he is asked to provide information. The lack of commitment of the leader results in low work efficiency, and therefore a small amount of produced goods.
Liberal style
it is characterized by the right of employees to choose whether to solve a problem or make key decisions. The role of the manager is limited to presenting the subordinates the goal of the action. As a result, the quality of the work performed increases significantly.
Participatory style
7 stages of outsourcing
1) planning
2) study of strategic effects
3) cost analysis
4) choosing an external partner
5) negotiating terms
6) transfer of resources, implementation
7) managing the outsourcing process
