“ Outsourcing or subcontracting in its original definition
is the process of transferring non-core company processes to third parties ,
which allow companies to dedicate themselves to the core functions of the
business ; those that add value to the company and its customers . "
Aspects to consider in outsourcing
To see what an incorrect outsourcing service can become, we
will know the case of a famous hamburger chain. See the following video:
https://www.youtube.com/watch?v=YR_-aMVQWZI
As can be seen in the video, the service that is given to
the customer who is simply ordering food in a hamburger restaurant is hell,
because the communication system that has been implemented is horrible. The
fundamental question that we want to see with this example is: Is it correct to
outsource the main processes of a certain company? What should be outsourced
and what should not? If it is decided to outsource, should the company lose
control of its activities.
In the video, it is clear that the service the company is
providing is bad for the customer and, consequently, this customer will not eat
at the restaurant again. By default, all systems services that are not
considered core of the company can be outsourced. By core process or core
process is considered any activity that is the one that gives value to the
client within a certain company; In the case of a restaurant chain, customer
service is a core process within the company; and, for example, the debt
collection service is not core in this type of company. It is clear that the
management of bad debts could be outsourced and the system and its management
could be passed on to a third party.
Can a core function be outsourced? Yes, but with control.
The company cannot pass a service and forget about it, assuming that the
subcontractor is going to do it as it wants, so that the service control cannot
be lost, it must be controlled at all times in all its aspects, to through an
internal team. For this, there are methodologies such as BPO and that of the
seven steps of ITIL, which serve to control these aspects that are fundamental
in service management.
When a company outsources its services , it is usually for
cost / benefit reasons and it must be properly valued whether or not it should
be outsourced, being clear about the core functions of the company . If you
decide to outsource, you should assess how to implement the company's
outsourcing processes and how to control outsourcing. Although the outsourcing
of services is fundamentally based on outsourcing non-core services of the
company.
Definition of outsourcing
Outsourcing or subcontracting in its original definition is
the process of transferring non-core company processes to third parties , which
allow companies to dedicate themselves to the core functions of the business
(those that add value to the company and its customers).
This process is based as a fundamental pillar in the change
of the company's processes in aspects such as culture, procedures, systems,
controls and technology, whose objective is to obtain better results,
concentrating all the efforts and energy of the company in the main activity .
Service outsourcing can also be defined as a process that
seeks to streamline and economize production processes for the efficient
fulfillment of the company's objectives , so that companies focus on what is
their own.
The outsourcing of services has been sold under the name
outsourcing, which means the practice of finding new suppliers and new ways of
ensuring the delivery of raw materials, articles, components and services.
In the classic definition of outsourcing it was said that:
" Outsourcing is the action of contracting a service or
final product without having any responsibility in the administration or
management of the provision of the service, which acts with full autonomy and
independence to serve various users ."
This is where the new service management, such as ITILv3 or
processes such as BPO, provides that companies cannot lose control of the
processes at the management level, they have to set up processes to be able to
control the service that the subcontractor is giving both to the internal
customer as well as to the external customer.
This last definition is correct, but taking into account the
variations that have marked the trends in the best practices of outsourcing, we
must bear in mind that:
• The
outsourcing of processes in companies is used to provide greater value to the
client; As they are normally non-core processes of the company, the third party
will add more value to these processes.
• In these
non-core processes of the company, their operation must be controlled by the
client, either through reporting, situation statements and client satisfaction,
etc.
• You can
outsource core processes of the company, although it is not normal. But the
leadership and management of the process remains with members of the company,
making the subcontractor ultimately function as a unit in the company. This
type of outsourcing usually occurs in technology companies, where services such
as CPDs or communications maintenance are passed on to other subcontractors to
specialize the service.
What should be outsourced
The non-core competencies of the companies should be
outsourced. It is also true that with due control, core competencies can be
outsourced.
Companies such as Red.es, which is, according to the
definition of its website:
“ Red.es is the public entity of the Ministry of Industry,
Energy and Tourism (MINETUR) in charge of consolidating the development of the
information society in Spain. Our mission is to execute ICT projects according
to the strategic priorities of the Secretary of State for Telecommunications
and for the Information Society (SETSI) and in collaboration with the
autonomous communities, councils and councils, local entities and the private
sector ”.
It has fully outsourced all the processes, but its staff is
made up of 200 project managers who control the different outsourcing services
that are outsourced.
In this section, we will review what should be outsourced
and what should not. This segmentation of departments is global, it is clear
that each company is a world and can work in totally different ways, some
things may be outsourced in some and other departments.
Processes and departments that can be outsourced
The outsourcing process not only applies to information
systems, but covers most areas of the company. The most common types are shown
below.
• Finance
department.
• Technical
department.
• Human
resources departments.
• Information
systems departments.
• Logistics
process.
• Productive
processes.
• Secondary
sales and distribution processes.
• Supply
processes.
Within the information systems department, the entire
department can be outsourced, but it is recommended that those systems that are
core to the operation of the company are maintained internally so that the
service can be adequately managed.
