What Services, Skills, and Knowledge Should Be Outsourced by Companies?

Outsourcing refers to the commercial technique in which a company employs a third party to produce products and carryout services initially done within the firm by the firm’s workers and personnel. Outsourcing reduces the cost used by companies to carry out operations if they were done in-house. According to Agburu et al. (2017), many businesses have been using outsourcing methods for decades, yet most have been unable to achieve their goals. Outsourcing solutions and talents have resulted in substantial productivity loss as well as poor profitability for several businesses. Many businesses, on the other hand, have benefitted from outsourced services, talents, and expertise. As a result, the focus of this paper will be on several of the skills, services, and Knowledge that businesses might consider outsourcing.

Businesses should outsource information technology (IT) services. IT outsourcing refers to entrusting a foreign entity with the administration of IT facilities, workforce, and procedures to accomplish a particular objective. Network maintenance and application development are two examples of IT outsourcing (Hanafizadeh & Zareravasan, 2020).
Companies could outsource IT solutions to save money on labor and ensure a consistent flow of resources. Companies can also outsource talents like communication and business planning to get recourse to high-quality services with the opportunity to save money and an adaptable company strategy that increases cash flow (Hanafizadeh & Zareravasan, 2020).
Furthermore, outsourcing these talents will allow large corporations to concentrate on their core competencies rather than spending money on less essential elements of their operations.

Finally, in situations when the business lacks specific skills, corporations should outsource expertise. Companies could, for example, outsource people with financial planning and risk management expertise, allowing them to have competent employees without needing to recruit new staff, saving money (Edvardsson & Durst, 2019). Another example is employing virtual assistants, which is becoming more popular, particularly among solopreneurs who work from home. Virtual assistants may help with anything from email handling to planning and online forums updating. Virtual assistants may be hired for as low as $10 per hour, making this among the most cost-effective methods to outsource.

In conclusion, outsourcing saves a company a lot of operational costs. Services, competencies, and expertise such as network maintenance, application development, business planning, financial planning, and risk management should all be outsourced. Outsourcing also offers many advantages, like lower labor expenses and a consistent service flow, to name a few. As a result, outsourcing enables a business to fulfill the needs and constraints of profit and competitiveness.

References
Agburu, J. I., Anza, N. C., & Iyortsuun, A. S. (2017). Effect of outsourcing strategies on the performance of small and medium scale enterprises (SMEs). Journal of Global Entrepreneurship Research, 7(1), 1-34. https://journaljger.springeropen.com/articles/10.1186/s40497-017-0084-0
Edvardsson, I. R., & Durst, S. (2019). The Impact of Outsourcing on Knowledge and Learning in Organizations. In Societal Entrepreneurship and Competitiveness. Emerald Publishing Limited. https://www.researchgate.net/publication/336347255
Hanafizadeh, P., & Zareravasan, A. (2020). A Systematic Literature Review on IT Outsourcing Decision and Future Research Directions. Journal of Global Information Management (JGIM), 28(2), 160-201.
https://www.researchgate.net/publication/337001593

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Order type: Essay
Subject: Business and Management
Academic level: Master
Style: APA

Language: English (U.S.)

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Discuss What Services, Skills, and Knowledge Should Be Outsourced by Companies

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