FM CHAP 7

• Outsourcing


  A business practice in which a company hires another company or an individual to perform tasks, handle operations or provide services that are either usually executed or had previously been done by the company's own employees. The outside company, is known as the service provider or a third-party provider.
• Outsourcing


  • The business practice of hiring a party outside a company to perform services and create goods that traditionally performs in-house by the company's own employees and staff.
• 10 reasons to outsource your business

  • Labor Cost - rather than employing a fulltime staff, outsourcing provides flexible workforce who can work when needed and also decrease labor cost.
  • Infrastructure and Material Costs - allows business to cut down in other expenses.
  • Efficiency - entrusting non-central company function to experts elsewhere.
  • Core business Function - allows all the attention and resources on more essential parts of the business.
  • Customer Satisfaction - talks about on how we produce products and services faster.
  • Risk Management and Continuity - Outsourcing partners may absorb any of the risk associated with departments.
  • Globalization - for international sales and marketing.
  • Flexibility - let you have short term and flexible contracts.
  • Resources - It give companies access to new resources and frees up resources that would otherwise be devoted to those backend function.
  • Innovation - It allows business to focus its attention and energy on more central aspects of work.
• Customer Relationship Management


  Refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving customer service relationships and assisting in customer retention and driving sales growth.
• Back office outsourcing


  A subdiscipline of business process outsourcing (BPO) wherein back office tasks or essential non-client facing support positions are outsourced to onshore or offshore outsourcing companies.
• Business and Professionals Consultancy Service

  Business consultants provide management consulting to help organizations improve performance and efficiency. These professionals analyze business and create solution while also helping companies meet their goals.
• Courier and Mail Service


  A company which deliver messages packages and mail and also known for their speed security tracking services and specialization.
• Compensation


  The cash rewards paid to employees in exchange for the services they provide. It may include base salary, wages, incentives, and / or commission.
• Property Equipment Outsourcing


  The decision to outsource property equipment is based on the desire of the company to increase throughput by increasing efficiency and equipment uptime. During tough economic times, companies look to outsourcing as the strategy to decrease expenses and make on-time deliveries with the least cost possible. Regardless of the economic environment, the main objective is on-time delivery of profitable products.
• IT outsourcing


  The practice of hiring resources from outside of an organization to handle certain information technology functions.
• Types of IT outsourcing

  • Moving business or service overseas - typically to take advantage of lower cost and more favourable economic climate.
  • Nearshoring - transferring business or services to another country close by, often time sharing a border with your own country.
  • Homeshoring / Onshoring - allowing employees to work from home rather than an office factory or related physical workplace.
• Human Resources Services Outsourcing


  When businesses hire companies to manage personnel functions. That includes administration of health benefits plans, retirement plans, and workers' compensation insurance. It also includes hiring, training, and legal expertise.