What is Outsourcing Processing?

Definition: Outsourcing is to hand over the non-core business of an organization to a professional manufacturer, and to specialize with the core business itself. Goal: To make the organization's business focus on core competencies and improve competitiveness.

Outsourcing makes it possible for a one-man large company.

Advantages of outsourcing: renewed focus on the core business.

Risks are mitigated by the trust in experts.

User satisfaction is improved through the culture or experience of the organization, not by improving process parts.

Competencies reward workers with career opportunities in specialized companies.

Project improvement.

Service improvement.

Skills upgrading.

Skill retention.

Skills pass-through.

Skill infusion.

Cost accounting and overall visibility of accounting and performance in business processes.

Cost Reduction

Volatile Management in Expenses through Fiscal Engineering.

Property conversion.

Capital investment retreat.

But outsourcing also brings with it a number of risks, and they often come to light when things go wrong. The risks associated with incorrect vendor selection and mismanagement cannot be ignored, especially for critical and larger operations. These risks can result in millions of dollars in direct losses and missed business opportunities, as well as wasted management time.

Outsourcing Risks:

1. Strategic Risks:

Strategic risks can lead the organization in the wrong direction and threaten the business;

2. Operational Risks:

Operational Risks, which are the main risks, involve a range of service-related issues, as well as staffing and corporate governance issues;

3. Financial risk:

Financial risk includes unplanned costs, regulatory issues, and debt associated with outsourcing;

4. Disaster risk

Disaster risk involves natural disasters as well as political and trade factors associated with offshore outsourcing.

Some risks can be avoided through insurance, but many are unavoidable and require managers to take other precautions.... Our study of best-case scenarios found that successful outsourcing should start with asking the right questions, requires the right partner selection process, and requires thoughtful corporate governance measures to keep the outsourcing going.

Traditional enterprises are not only the design, manufacture and sale of raw materials and products, but also the life and death of their employees. In China, this is the "enterprise-run society" that has been widely criticized in the past, in fact, in the early form of Western enterprises, we can also observe such an example, for example, the Ford Motor Company in the United States used to have a special ranch to provide automobile For example, Ford Motor Company in the United States used to have a special ranch to provide leather products for automobiles, and there were also forests to provide wood products. In an imperfect market environment and credit system, this practice is a natural self-protection measure of the enterprise, which is "vertical integration". Obviously, society is developing, and gradually into an accelerating trend, changes in the market environment prompted us to change the business philosophy.