Outsourcing company - what is it and what services does it provide?

Currently, part of the staff for any organization can provide an outsourcing company. What kind of services are these and how do such companies work? Let's try to understand this article.

Background

Outsourcing, as a separate line of business, arose from the practice of conventional recruitment agencies. The usual hiring bureaus tried to employ their applicants for a permanent place of work. But there were also firms that required workers temporarily, for example, to place the sick employee or to perform any one-off work. The services of the outsourcing company are aimed precisely at filling this gap. The very word "outsourcing" in English means "external source" and gives an understanding of a third-party provider.

On the other hand, the company has a need to recruit employees for a specific job. Such a company does not need to inflate staff and pay taxes for employees whose work will be useful only for a strictly limited time. Here, an outsourcing company will also come to the rescue. The work for which temporary employees were required will be carried out, and the company itself calculates with the outsourcing firm, without worrying about charging salaries, bonuses and taxation of temporarily hired workers.

How it works

Services for the selection of temporary personnel are currently provided by an outsourcing company. What kind of services are these and how are they hired?

For example, the organization is preparing for a general tax audit. To prepare for this accounting event, temporary employees may be required - to recheck the original documents. For example, an organization applies to an outsourcing office with a request to allocate several employees for a certain time. The Bureau provides them with temporary employees according to the contract. These employees are not part of the staff of the organization, they do not receive salaries there - all calculations are carried out only through an outsourcing office.

Types of outsourcing

Currently, there are different types of outsourcing, the range of services depends on the type and completeness of the functions transferred to a third-party organization. There are partial and full outsourcing. Partial is when part of the functions are shifted to outsiders. If an employee of an outsourcing company takes on all the work for a particular department, then this type of service is called full outsourcing. How does it look in practice?

If the problems of setting up and upgrading computers to enterprises are shifted to the shoulders of a third-party enterprise is a complete outsourcing. If a third-party company is only responsible for administering the system and updating the databases, and hardware problems are handled, repaired and updated, it is private outsourcing. The type of services required by the enterprise is specified in the contract signed by the outsourcing company. What is this document?

Typical contract of outsourcing

The basis for the registration of relationships and responsibilities between the customer of services and the office of outsourcing is a contract. In the main part of the document on paid provision of services, there are points about the delegation of functions that the outsourcing company will continue to carry out. Service is conducted after preliminary selection of candidates - the customer of services can insist on independent selection, interviewing and checking the qualifications of applicants for temporary work. Or maybe assign these responsibilities to outsourcing.

The standard contract should contain such items:

• Privacy - compliance with the customer's commercial secret , clause on non-disclosure of confidential information and compliance with safeguards;
• Detailed requirements for a candidate for a position with a list of personal characteristics: the availability of appropriate education, the necessary experience, work in a particular position, other;
• Conditions for the performance of work - a list, scope, timing, etc .;
• Measure of responsibility of outsourcing for poor-quality provision of services - fines, penalties, return of funds, other.

Popular Outsourcing

To date, companies engaged in temporary provision of employees, specialize mainly in such activities:

• IT-outsourcing - this means work on web programming, site creation, maintenance, administration, creation and maintenance of unique software.
• Production outsourcing - involves the transfer of the company part of the production functions. For example, an advertising agency instructs a third-party organization to distribute flyers and flyers.
• Outsourcing of business processes - when it comes to attracting third-party employees to do one-off work. For example, an additional staff of accountants and lawyers for the duration of the tax audit.

Alternative employment opportunities

For students or persons without a permanent place of employment, the opportunity to improve their property status is provided by work in outsourcing companies. Reviews of temporary workers say that such cooperation gives a small but steady income. Outsourcing provides an opportunity to try on other activities and try to find yourself in another specialty. It is suitable for those who do not see themselves in a permanent place of work, they want to develop. It is good for beginners - you can feel from the inside the process of production or sales, working as a temporary employee in the operating enterprise.

The base of work of outsourcing

Personnel is the main advantage that a good outsourcing company has. Reviews of the work of temporary employees are the capital of the firm, with the help of which the company will constantly expand the customer base of customer organizations. Thanks to a diversion from secondary tasks, full-time employees can focus on achieving the main goals set by the company's management.

Advantages of outsourcing

The undoubted advantage of such cooperation is the saving of funds. When concluding a contract to attract outside workers, you can safely predict a cost reduction of about 20%. Such savings arise due to a reduction in investment in intangible resources - such as training, internship of a new employee, maintaining their own staff, reducing the staff of administrators and accountants for the provision of wages or payroll. The company's costs are reduced because of temporary disability of the employee - in case of illness, the office for outsourcing simply sends a new, no less qualified employee. And if there is a reduction in the staff, you can try to substitute the outsourcer for a new amount of work and analyze the effectiveness of his work, in terms of energy costs.

Additional advantages

A good option outsourcing will be for foreign enterprises or for companies that open new activities. Foreign experts may not thoroughly know the subtleties of legal and accounting support, adopted in our country. For the competent management of economic and tax accounting, outsourcing employees are invited, who will perform their duties right up to the appearance of full-time employees.

With the development of new types of activities hiring temporary workers will help the company's management evaluate the live profitability of the new venture, calculate the necessary costs and see the efficiency of the new line of business "at idle".

Disadvantages of working with outsourcing

Of course, in such cooperation there are also pitfalls. First of all, it is a constant dependence on another enterprise. If the temporary hiring of the staff loses its staff, all this will immediately affect the reputation of the firm that entered into a contract with it. Perhaps some breach of confidentiality - temporary employees can go to work and to a competing firm and unwittingly uncover the company's commercial intentions, where the outsourcing company sent them last time. What kind of information is it, and how will they be announced - depends only on the personal data of employees who were sent by the outsourcing company.

Reviews of employees working in the staff of the company-customer, can also affect the effectiveness of outsourcing. There is a risk and rejection of temporary employees by the staff of the company. Perhaps, temporary workers will be perceived as competitors, and not as assistants. Such an imbalance in relations can have a bad effect on cooperation.

How does the company provide hiring services?

A good example of professional work on hiring and offering temporary employees is the United Outsourcing Company.

The UAC is positioning itself as a multi-disciplinary holding of a new type, offering personnel assistance to enterprises involved in various economic sectors. The company's personnel reserves are data on a variety of basic and high-skilled workers that can be involved in various areas of economic activity.

Basic services of UAC

At present, the unified outsourcing company offers its services on replenishment of human resources in:

• Accounting and legal support - allow you to save on employment and training of regular staff, to get effective work without spending on improving the skills of permanent employees;
• Information and technical support - allows to provide software support for all operating computer networks;
• Call-center services are an integrated information support and an effective channel for the development of the company. An experienced call-center operator can create a favorable reputation for a firm or brand, increase the loyalty of partners and customers;
• Provision of own business premises for business meetings, conferences, meetings and presentations;
• Household and administrative services - implies the centralized provision of any business entity with low-skilled personnel - cleaners, loaders, waiters, dishwashers, cook assistants, maids, couriers;
• Security and security of premises - are provided by carefully selected personnel, which can significantly reduce the risks of theft and damage to property.

This versatility allows UAC to support the customer in a comprehensive manner, offering him a maximum of services. Not surprisingly, the company annually concludes over 500 new contracts, of which about 90% are extended for the next period. The effectiveness of the provision of services allowed the company to enter foreign markets - various outsourcing organizations operating in Kazakhstan, Armenia and Belarus operate under the brand "United Outsourcing Company".

Employee feedback

Numerous reviews in the networks about the UAC suggest that the organization does not often find jobs, and it is rather problematic to get a long-term post there. Nevertheless, the permanent employees of the UAC assert that the flexibility of the schedule and the constant surfing of other companies allow you to explore your profession to the finest points from all sides.

As you can see the diversity of services provided by temporary employees, allows you to stay afloat and the company-customer and the company-outsourcing. And do not despise about the temporary work not on the specialty, which at this time can provide you with outsourcing. After all, a new experience will definitely help you to find a permanent place of work or open your own business.