CHARACTERISTICS OF OUTSOURCING AS A FORM OF PERSONNEL ALLOCATION.
Outsourcing is defined as the transfer by the company on a paid basis of part of their non-core functions or business processes for execution by a third-party organization. In this case, the latter carries out the provision of staff, tools, and jobs for the necessary work.
The customer does not control the contractor's employees and the course of execution of works. He only evaluates the final result in terms of quality and deadlines.
Thus the personnel involved carry out the orders of the outsourcing company, and obey its work regulations and work instructions.
It should be understood that the executor can be both an organization with staff augmentation and an individual registered as an individual entrepreneur or self-employed person.
Let's look at the main characteristics of outsourcing personnel to a company:
the executor assumes responsibility for the performance of a function that is part of the customer's business processes and is necessary for its functioning;
the contract on outsourcing of personnel is concluded for a long period, as the customer plans to exist for an indefinite period, and for conducting successful activity it needs a regular performance by the executor of the certain volume of work;
For the outsourcing organization, the work performed by it acts as the core activity. This ensures considerable experience and high professionalism of its personnel;
the staff of the executor can serve not one but several customers;
the performance of the required operations is carried out for the customer as required;
the execution of works takes place on the premises and under the control of the contractor. If it takes place at the customer's premises, the personnel of the outsourcing organization is guided by the instructions of their employer.
ADVANTAGES AND DISADVANTAGES OF OUTSOURCING
As an optimization tool, personnel outsourcing has its advantages and disadvantages. And the choice in its favor the organization makes on their comparison and allocation of the key moments for it.
All the advantages of outsourcing can be realized only by the right choice of the partner providing such service. In addition, despite some negative aspects, outsourcing can bring benefits. For example, more expensive accounting services can save the organization money by reducing the number of penalties from the inspectors, the lack of disruption of tax payments, and fewer errors. Also, the company may choose a more expensive supplier of components compared to their production, if they are of significantly higher quality and more reliable.
The above positive and negative aspects are typical not only for the outsourcing of temporary personnel but also for other types.