What does outsourcing mean for employees?
The extent to which outsourcing is important for employees mainly depends on the type of outsourcing. So the question arises as to whether it is internal outsourcing or external outsourcing. The specialty of the in-house variant is that tasks previously performed within the company are outsourced to a subsidiary, for example . In the course of external outsourcing, however, the tasks are transferred to an external company . If the latter is the case, there is a risk for employees that they could be affected by an operational dismissal because the tasks they previously performed are no longer applicable.
Such a scenario could arise if a company decides to relocate its production to another country with lower wages. For employees, however, both variants can also reduce the workload. This is conceivable, for example, if, due to an outsourcing measure, they have the opportunity to concentrate on their core task again. Outsourcing has positive effects for employees if the company practices efficient resource planning.
An example of this is the aforementioned ERP software that is provided and maintained by an external service provider. With their help, important areas can be automated, which saves time because employees are less likely to deal with recurring routine tasks. The success can be seen promptly for the employees, the result is higher motivation. Regardless of which outsourcing measures are planned by the company, good communication should always be ensured. The company should make measures for employees as part of change management as transparent as possible and ensure comprehensive and open communication. In this way, no rumors arise and the previously good working atmosphere remains.
You should avoid these mistakes
If you are entrusted with the implementation of outsourcing projects, it is important that you avoid certain mistakes that can cause lasting damage and also cause financial damage to your company. The following mistakes should be avoided when outsourcing:
- Unclear definition of the goals pursued by the company: It must be clear what the company is about in the planned outsourcing, also in the long term.
- Incorrect definition of the scope of services: In order for cooperation to work, both sides need to know what is allowed to them and what is not part of their tasks. Ambiguity can quickly lead to problems here.
- Unwise choice of service provider: The chosen service provider must match the company, especially in terms of competence and performance.
- Insufficient drafting of the contract with regard to the end of the term: In the contract, not only the procedure during the term must be specified in detail, but also the processes at the end of the contract term (return of data, transfer of personnel, reimbursement of know-how).
- Insufficient flexibility of the contract: The terms of the contract must be designed in such a way that the parties can react flexibly to changes (for example in price or purchase quantities) despite all requirements.
- Non-functioning control of the service provider: Here a service reporting should be established with which the company remains up to date and the service provider has evidence of the services provided.
- Bad risk management : In an outsourcing project, even small mistakes can lead to major damage. It is therefore necessary to keep an eye on all risks.
According to biotionary, outsourcing is a complex process with different parties. In order to combine the needs of your company on the one hand and the conditions of the service provider on the other and to create a stable and fruitful cooperation, you have to identify and eliminate possible sources of error at an early stage. Ultimately, your company and the external service company it has chosen must harmonize with one another. Cooperation will only be uncomplicated if each side knows which tasks are being given and who has which competencies.
The outsourcing of individual tasks, smaller areas or entire parts of the company to an external service company is primarily intended to keep the contracting company competitive. In addition, outsourcing is used as an instrument that saves costs and frees up human resources so that you can concentrate more on your core tasks.
A company can outsource very different areas. Therefore, there are different forms of outsourcing, which have different names. A special form is what is known as offshoring, i.e. the outsourcing of tasks abroad. Problems can arise with this form of outsourcing, which are mainly due to the distance and the conditions in the destination country.
Before an outsourcing measure is actually implemented, the competencies within the company must first be clarified and a team with far-reaching powers must be deployed. This controls the entire project, from the analysis of the current state to the implementation phase, creates a schedule, continues project management and ensures ongoing quality control.