Outsourcing was invented by Henry Ford so that not only the richest could drive cars. Today, we are increasingly outsourcing logistics and IT services because, thanks to evolving technology, we need highly specialised, tailor-made and yet affordable services.
Not all of us need to like and know how to shorten trousers or change tyres. After all, that's what dressmakers and car mechanics are for. Without using the skills and knowledge of professionals, we would have far less time and opportunities. Delegating tasks means that we can do what we choose to do because we can and often enjoy it.
Multitasking and apparent omnipotence are now being criticised by scientists who study the biochemistry of the brain. The narrower the area of our operations, the more precise the focus and the better the results achieved in less time.
If there is a thing that we cannot do more efficiently, cheaper or better than a competition, there is no point in doing it further.
These assumptions work well in managing companies, and not since today. Back in 1923, Henry Ford said: "If there is a thing that we cannot do more efficiently, cheaper or better than a competition, there is no point in doing it further. We should hire the one who does it better than we do”. As we know, he has come out of it favourably, gaining timeless fame as he revolutionised the mass-production of cars.
In business, delegating work to an external company is called outsourcing. Properly implemented, it is a prerequisite for success, as it reduces costs and contributes to better control of operational expenses. Certain tasks, such as logistics and warehousing or IT services, can be performed more quickly and cheaply by another company specialising in these areas.
This will enable us to focus more effectively on achieving our strategic objectives and to respond more flexibly to changes and challenges in the industry. The smaller the area of direct management, the more room for creativity. This allows us to raise new capital and implement innovative solutions more effectively. Indeed, we do not need to invest in growth and have fewer expenses in the short term, but over time this can have the effect of putting us out of business with more imaginative competitors.
The expert knowledge and know-how of business partners saves not only money, but also time and human resources, which contributes to better results and a higher market value for the company.
Hiring an external company precedes the decision on which functions to outsource.
This involves the most efficient, cost-effective, low-cost access to a variety of resources. These should be support tasks supporting the company's core strategy or fulfilling specific elements of it.
The following are most often outsourced:
as well as relatively simple services such as:
Logistics companies, as well as those in the IT field, are becoming increasingly common as outsourcers. In both of the latter cases, it is a matter of specialised knowledge that will enable our company to significantly improve its efficiency.
Developments in technology are contributing to changes in many industries that need to be responded to if we want to be profitable. There is almost a need to enlist the help of outsourcers to find new growth drivers. The demand for cheaper, yet tailor-made logistics and IT solutions is further created by the ongoing consolidation of the market.
As with any service, the company should be well verified - it is advisable to read recommendations and feedback from clients and colleagues. The main rule of delegation is - the narrower the range of services a company provides, the better, because then it is better specialised.
If someone claims to know everything, they don't really know anything well. Specialised but smaller companies (not corporations) are able to perform the service professionally but at a reasonable price.
We can opt for full or selective outsourcing. In the latter case, part of the tasks are performed in-house. When concluding a contract with an external company, it is worth paying attention that the cooperation is based on trust, oriented towards the achievement of precisely set goals and the completion of individual project stages.
Also important is the security of both parties to the contract, for example commercial, ownership and know-how. Economists predict that outsourcing in Poland will develop more and more dynamically.
New technologies, especially digital, information technology, are significantly increasing the possibilities for companies to relocate and decentralise their activities. This favours the outsourcing of logistics and IT services.
