Outsourcing Explained Simply
- Outsourcing means that a specific service, task, or process for your business is performed by another company
Definition of Outsourcing
Outsourcing is a business practice of delegating specific tasks, functions, or processes to another company, usually based on a contractual agreement. The goal of outsourcing is to leverage external expertise, reduce costs, risks, or improve efficiency. Typically, outsourcing involves secondary and support processes and functions. This allows the company to focus on its core business activities while the external provider takes care of the support services..
- Entire functions, operational areas or services are transferred to an external provider.
- Usually managed as a service (SLA)
Examples of outsourcing
- HR functions to a third-party provider (e.g., payroll, recruiting)
- IT Maintenance
- Building cleaning services
Why companies use outsourcing?
- For services that the company does not want to provide on its own
- When they want to focus on their core business.
- When they want to leverage the professional experience of the supplier.
- When they want to transfer risks to the supplier.
How Aptien Helps With Outsourcing
Aptien, as a work management software can significantly enhance the efficiency, organization, and oversight of outsourcing by streamlining communication, task tracking, and resource management between the business and the external service providers. Here’s how it helps:
- Assign and track IT tickets to your vendors
- Monitor the provider’s resolution times against SLAs.
- Share secure system access or documentation
1. Vendor and Service Management
- Central Vendor and Company Database: Keep all vendor information in one place, including contact info, contracts, service agreements, and payment terms.
- Organize Vendors by Category: Group vendors by service type (e.g., IT, maintenance, marketing) for easier management and visibility.
- Track Vendor Performance: Evaluate suppliers based on key performance indicators (KPIs).
- Enhance Communication with Vendors: Use a collaboration platform with comments, notifications, and document sharing.
- Reduce Misunderstandings: Keep everyone aligned without relying on scattered tools like email.
2. Contract and Service Management
- Digital Contract Repository: Store all contracts electronically with easy search options for quick retrieval.
- Renewal Alerts: Set automated reminders for contract renewals or expirations to prevent service interruptions.
- Compliance Monitoring: Use audit logs or task management to ensure contract terms are followed.
3. Automate Purchase Orders and Support Tickets with Vendors
- Automate routine tasks like invoice approvals and status updates.
- Reduce administrative workload and keep outsourcing processes consistent.
4. Document and Data Sharing via Extranet
- Securely share files, contracts, and sensitive data.
- Ensure safe and smooth transfer of resources to external vendors without risking data breaches.
5. Performance and Contract Compliance Tracking
- Monitor important metrics, milestones, and deadlines for outsourced services.
- Ensure vendors meet service level agreements (SLAs) and agreed benchmarks.