Outsourcing meaning
Outsourcing means the transfer of internal company tasks to external or internal service providers. As a partner for our customers’ companies, we support you in various process engineering processes in our plants, such as in Schöneck.
Examples for different types of outsourcing
- Out-tasking: In out-tasking, external service providers take over individual tasks, but the company placing the order retains process control.
- Selective Outsourcing: In Selective Outsourcing, special parts of an area are outsourced to a third-party company to compensate for a lack of expertise.
- Comprehensive Outsourcing: A complete division of a company is outsourced. Not only the “assets”, but also large parts of the affected workforce are transferred to the third-party company.
- End of life production: Here, products that are at the end of their life cycle and are therefore only manufactured in smaller quantities are transferred to production service providers.
- Business Process Outsourcing: In this form, an entire company process, such as purchasing, is outsourced to a third-party company in order to obtain more favorable conditions for procurement, for example.
- On Site Management: This is the takeover of the function of a department of the customer’s company on the customer’s premises by an external service provider while partially or completely retaining the existing resources.
Strategical reasons for outsourcing
- Better concentration on core competencies
- Lack of know-how can be compensated
- Higher performance in the company
- Faster reaction to changes
- No own investments (software, hardware, new technologies)
Cost saving potential through outsourcing
- More favorable labor costs due to the focus and specialization of the workforce
- Elimination of external maintenance and servicing costs of the own server infrastructure
- Care and support expenditure for the operation of the servers
- Costs for data backup and external outsourcing are eliminated
- Avoid follow-up investments in hardware, software and support
- Avoidance of any locally necessary investments in security and data protection