WHAT TO CONSIDER WHEN OUTSOURCING BUSINESS FUNCTIONS
Businesses may decide to outsource some business functions for several reasons. The underlying objective is almost always the same: to save time and/or money. Special attention should be paid to outsourced processes, especially to those like production, logistics and call center services, which have an effect on the quality of your products or services. If your business gives sufficient attention to the work of external partners, you have better chances of avoiding variance in quality and unnecessary extra costs.
Author Zsuzsanna Kohl
FrameWork Hungary Ltd.
In many cases it is not clear exactly which tasks performed by the subcontractor, what kind of checks he or she inserts on, how to manage the business information and customer data. But if you outsourced the activity that basically we can manage also, the quality of product or service, the business continuity and reliable operation you could keep under your control, specifying quality criteria, and requires that they be implemented along the rules and controls of external partners.
It is one of the bare expectations that the activity (for example, a system administrator service, product development or sales) complies with all relevant legal, professional and other requirements and their own expectations as well. The important part of the collaboration agreement is about that also, because it defines the tasks and responsibilities, which is essential to the possible legal disputes. Therefore, we need to see that in itself, it does not guarantee the prevention of defects and any customer complaints. It is necessary to set the required operation and various work phases between frameworks, and there is a need also that outsourced activities should be clearly justified. In order to companies are able to provide the same quality service or products by outsourcing processes, implementation check have to be to be consistent also. Reviewing subcontracting activities we have to check with the same controls as you would use in not outsourced processes. The quality and quantity of controls must be proportionate to the risks, which outsourcing may involve.
The sub-contractor must be able to demonstrate that they comply with the standards, and carry out the necessary checking during the work. However there are cases where the performance of outsourced process output can only be verified by subsequent monitoring or measurement. If your company decides carried out tasks in the future with a partner company, it is important to keep in mind that your company is responsible to the client about the outsourced work quality.
The fact of outsourcing that task does not relieve the company from the responsibility, that a product or outsourced service impact to the customer or to the purchaser. Underlying work processes and providing partner control you can keep the leader’s attitude which can help you avoid quality problems and the hidden costs which unnecessarily incurred. You can ensure the provident management of personal or business data and with sufficient evidentiary information in proceedings.
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