What is Outsourcing? – Is it Good for an Organization?

Outsourcing is a modern management system, which is based on the idea of removing from the organization the operation of activities that are not at its base and transferring them to the contractor and leaving only the core activities to be operated and managed directly. This method enables the organization to focus on its area of expertise, to invest most of the resources in it, and to maintain effective control over its manufacturing divisions.

Outsourcing can be used for any position whatsoever, but today we see companies using it for non-fundamental roles, those whose function is to provide support to the central infrastructure of the company or aid in the day-to-day operations of the company.

Outsourcing is a tool used by many high-tech companies. Outsourcing has many meanings, with each approach influencing both organization and employee. Is outsourcing a move that benefits the organization and its employees?

Outsourcing is a step that involves employing employees who are not employees of the organization, for the organization. In other words, in this manner, there is no difference between contract workers and outsourcing workers. In both cases, the employee is employed by an outside company responsible for his or her recruitment, training, and other matters related to employer-employee relations. There is no employer-employee relationship between the organization in which the work is carried out and the employee, but only between the employee and the company that recruited him for the task.

In outsourcing, the employees continue to maintain constant contact with the parent company, which is committed to meeting specific and clear goals.

There is no doubt that the decision to use outsourcing services is made in many cases for reasons of saving money. The avoidance of employer-employee relations with all their implications (vacation days, provision for pensions, convalescence pay, training) saves the organization money and time.

Outsourcing services can be very beneficial for organizations. In order to achieve better results and not only to save costs, but it is also necessary to ensure that the process is carried out properly and effectively, both in terms of the organization and the employees who carry out the task for it.

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