Basically, there are four categories or kinds of outsourcing services that outsourcing firms provide. These four services are Operational, Process Specific, Manufacturing, and Professional. And, as more businesses and companies seek enhanced ways to cut back on overhead costs without missing out on quality output and support, these services have become even more popular. Each of these categories or types of outsourcing services also comes with tons of benefits. As you probably already know, substantial cost saving is the major benefit common to all the types of outsourcing mentioned earlier. Cost saving through outsourcing basically comes from labor costs as well as equipment cost.
So, let’s look at each of the afore-mentioned types of outsourcing service.
Operational Outsourcing Services
Outsourcing firms provide operational services to their clients. Operational activities are commonly obtainable in the manufacturing industry. In the manufacturing industry, there are tons of specific operational activities, making it necessary to outsource some of the operations in order to hasten production and present the final products to the target market on time. For instance, a manufacturing company can decide to outsource equipment repair and machine maintenance tasks to an outsourcing vendor that specializes in such tasks. Other examples of operational tasks that a company can outsource include landscaping, cleaning, property management as well as facilities maintenance.
Specific Services Outsourcing
Also, there are specific outsourcing services. In essence, some unique processes or internal procedure can be contracted to specific outsourcing service providers. A typical example is an automobile company that will save more by contracting a specialized outsourcing firm to manufacture their car’s components or parts. Ultimately, this will make assembling process faster and simpler and ultimately lead to huge cost saving, plus significant reduction of the amount of time required to complete production and lunch the product.
The service industry also leverages specific services outsourcing since it is a common phenomenon to outsource specific or particular aspects to firms that have the expertise to handle the task in question. The company or business gains extra advantage of concentrating on its core strength and competence by outsourcing the other aspects.
Manufacturing Outsourcing Services
Some outsourcing firms specialize in rendering manufacturing services. Such services are usually specific to an industry. For instance, a company that manufactures car can contract a manufacturing outsourcing service to handle the designing and installation of some parts such as the windscreen. The benefits with this arrangement include substantial cost savings plus minimal time required to assemble parts.
Professional Outsourcing Services
Typical examples of outsourcing services are legal, accounting, information technology support, purchasing, as well as different specialized services. The potential savings that come with outsourcing these professional aspects of a business are quite substantial. And, the major benefit or lure is that the business is able to gain access to top quality resources and will only pay for services actually utilized. Ultimately, the company or business is able to save substantially on overhead costs.
Obviously, outsourcing firms provide outsourcing services that cover virtually every aspect of a business operation regardless of the niche or industry.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.