The design of the functional part of a business, is the collection of mandatory and optional services, which are allocated to different working posts. In doing so, our first and foremost target, is to hire the best available employees and exploit their working hours in the most efficient way. When, finally, everything is well organized, each post should have a set of managerial and executional functions. Through experience we know of periodic, frequent and sparse activities, of regular and unexpected events and obligations, of scheduled and on-demand task.
Since miracles rarely happen in the business world, we should think of other alternative solutions. We are looking to reduce the cost of wages, without sacrificing the quality of the work and the key here is “economies of scale”. For example, let’s suppose you own a trading company, which is delivering products all around Sofia. You have started with a couple of delivery vehicles and gradually increased their daily workload until they couldn’t manage successfully their schedule. So, to keep growing you should buy more trucks and hire more personnel, right?
The answer is it depends. Let’s say, you have found an experienced logistics company with a lot of trucks and vans, which is offering you a transportation with lower costs compared to the ones you currently have. So, by implementing the concept of “economies of scale”, the logistics company can offer you a better deal and the game you are about to play is called outsourcing.
Outsourcing is the allocation of business activities to service providers, who are not permanent company staff. In our case, you assign to the logistics company neither your merchandize not your sales, but your delivery service. Are you obliged to assign it entirely and sell your convenient vans? Not necessarily. It would be wiser to segment your deliveries, keep the crucial ones and assign the rest. You are free to make the preferable or more profitable combination and you also have the option of changing your initial choice at any time in the future.
Outsourcing can be utilized for a variety of business activities related to the office personnel. You can, for instance, replace your full-time/full-waged legal department by a consulting legal firm, or you can minimize and improve your crowded accounting department by subtracting many routine works and subcontract them to an accounting consultant.
Are you happy with your personnel but unhappy with the excessive cost of overtimes paid for additional workload? Outsourcing can solve this problem. You just have to exclude whatever part of their work is on-demand and creates the necessity of overtimes, so they will be compensated only with the nominal salary.
Let’s now think of a relatively small business, without many working posts and expensive employees. Are you concerned about hiring an experienced (i.e. more expensive) executive for expanding and improving your business? If this is the issue, try exploiting outsourcing, instead. An experienced consultant will work closely with your young executives, they will together organize, plan and schedule the development of the business, and your personnel will acquire precious experience, so they can continue on their own, after the consultant has delivered the project.
There is a long list of alternative solutions that outsourcing gives you in terms of consultancy. You might, off course, have several questions about the cooperation with a consultant, the content of the assignment, the issue of confidentiality and a lot more, but everything can be clarified through an open discussion with professional consultants.
Our company offers a substantial number of informative texts and documents, which will be gradually added in our site as articles, so you will have the necessary time to review them and discuss your needs and options with your partners and colleagues. Moreover, our contributing consultants are always available to provide explanations and clarifications as well as to propose tailor-made solutions for your particular requirements. You only need to contact us directly.
