4 Organizational Functions That Can Be Outsourced

      Comments Off on 4 Organizational Functions That Can Be Outsourced

It is a known fact that almost all organizations outsource at least one of its many functions to external parties today for the purpose of reducing the operational cost and increasing the volume of output. These functions are usually non-strategic and requires certain special skills and expertise which the organization does not possess and would hold substantial costs if it were to hire them. The opportunity to focus more on the core functions of the while attempting to expand the organization is another major benefit gained by outsourcing. Therefore, knowing what you can outsource and the advantages gained by each will help you make an informed decision. logistics brisbane

Supply chain function

Supply chain is a major process for any organization and it is sub-divided into a multitude of areas such as purchasing, inbound transportation, quality control, demand and supply planning, receiving, handling and storage of materials and the control of inventories. Performance of these tasks within the organizational premises will require a large capital investment on infrastructure, equipment, training of employees and many more. Logistics companies Brisbane which are specialized in these functions with the necessary resources and contacts will certainly do a much better job, saving loads of costs for your organization.

Manufacturing

The manufacturing function is usually outsourced by firms to Asian countries such as China, India and Bangladesh where cheap labour is abundant and hence the cost of production too will be low. The United States based multinational conglomerate General Electric company recently established a research facility in India where they recruited fully qualified local engineers and payed them about 10% of what they paid the engineers back in US. Although such unreal financial gains can be achieved by moving operations to lands where labour is cheap, ever-present challenges associated with logistics, political influence and constant power and water outages will hinder the smooth flow of the organizational functions.

Bookkeeping

Multitasking has been estimated to cost the world more than a thumping $400 billion each year and you certainly wouldn’t want your organization to contribute to these numbers. Tasks such as the handling of finances of a firm must be done with utmost care and a very high level of accuracy. If blunders are made in such a function, the reliability of almost all organizational operations will become hindered. Therefore, instead of burdening your employees with the exhausting yet important job of bookkeeping, outsource it to a well-known external party who will provide a much more professional service.

IT operations

Carrying out inhouse IT operations can be a very expensive task as it not only requires a highly skilled set of employees who possess the necessary know-how but also requires a giant investment on acquiring the latest electronic equipment. These will also have to be constantly repaired and upgraded and the employees too will have to be updated regarding an and all advancements. Specialized IT firms are always willing to accept your organization’s IT function and perform it in the comprehensive level possible.