Subcontracting Production

Subcontracting production

Introduction

Companies are changing the relationships between the parties of a subcontracting. At present, organizations seek more formal and long -term relationships where the internal team assumes a role of strategic partner, allowing a better understanding of the development of the Outsourcing company strategy. The advantage of this type of relationship is that it allows both parties to become familiar with the staff and the operational style of the other company and helps the Outsourcing company to meet the contractor’s expectations more effectively in terms of communication and frequency in frequency inservice reports.

Developing

Important. The term outsourcing, also known as subcontracting, refers to the process developed when an organization hires another to make part of its production, provide its services or take care of some activities that are its own. The company moves or allocates the resources aimed at fulfilling certain tasks towards an external company through a contract. Organizations resort to outsourcing to reduce costs, improve efficiency and concentrate on those activities that dominate better and constitute the basis of their business.

Outsourcing covers a wide range of areas, including customer service, accounting, telemarketing, graphic design, content generation, manufacturing and engineering. In general, it involves specialties outside the fundamental functions of the contracting organization.

Outsourcing companies are specialized in the management of certain activities or processes susceptible to outsourcing: that do not belong to the hard activity of the company’s activity.  Who have their own autonomy and substantivity. Where address and control is carried out by the outsourcing company.

Where there is an assumption of business risk by the outsourcing company. Why do companies outsitate? Opportunity cost: Leave in the hands of a specialized company services that do not provide value to the fine product L. This forgot about specific absenteeisms, vacation substitution and initial formations for internal changes. PROFESSIONALITY: Maximum efficiency in services is sought, providing content service. Activity reports and continuous improvement plans are made, with the objective of the progressive increase in quality.

Reduction of direct costs and business risk: fixed costs are variable. Impossibility to increase template: some companies have a number of contracted personnel limited by their matrix and outsourcing is the only solution to grow. Cost reduction: by providing the same service to a higher user base, Outsourcing services providinginmate for them by the client.

Economies of scale can be manifested in different ways. One of them is the reuse of models developed for a client in relation to another. That is, the supplier that sells the same software system to several customers, has a higher user base among which distribute the fixed system development costs. Another advantage of acquiring a larger size is the best distribution of work and the most efficient use of resources. While for the service contracted to the supplier, variable costs will usually be paid depending on the use made of the same.

If the company would like to provide such services, it should have certain fixed structures that would mean a fixed cost, regardless of the use of the service. The external supplier, meanwhile, will have at all times of modern and technologically very advanced infrastructures, something that the company may not be able to afford when this task developed itself. Flexibility: On many occasions, the reason that leads companies to outsource is the flexibility they get with this practice. 

Thus they can increase or reduce productive capacity in a simple way, without having to cross long selection and/or employment regulation processes, which improves adaptability to changes in the environment. Speed: the possibility of acquiring systems already developed by the service provider and that you only have to adapt and customize the final customer, as well as the fact that the supplier is a specialist in its field, provides great speed against the time it would takeThe client to develop it internally from the beginning. 

Therefore, this allows to reduce the time that the products take to reach the market. Specialization: Outsourcing service providers are usually specialized in a very small number of activities that they know how to do very well. This allows them to enjoy specialization economies and save costs, which can offer their services at a lower cost than that would mean the company to develop that internally. But at the same time, on many occasions, their specialization allows them to offer a quality service superior to the one previously provided by the client itself. 

The customer sees increased, at the same time, his ability to develop new products and services and obtain access to new technologies and competencies. Types of outsourcing. Delocalization: It implies the hiring of services to third parties based in countries that offer minor costs due to labor legislation, PRL, among other factors. IN-HOUSE: It is the outsourcing that occurs at the facilities of the service contracting organization. OFF-SITE: When the outsourcing service occurs at the facilities of the company itself that provides it.

Temporary work companies: It is a company whose activity, unique and exclusive, is to hire workers to temporarily make them available to another company, called a user. This assignment of contracted workers can only be carried out through temporary work companies duly authorized in the terms provided in Law 14/1994. In temporary work there is always a triple relationship. That which occurs between ETT and the worker (employment relationship);which is established between the ETT and the user company (commercial relationship) and that existing between the user company and the worker himself, which is a functional relationship.

conclusion

He has the faculties of management and control of work activity. It is what is commonly called as “triangular relationship” Selection companies: it is a company specialized in profession of professionals, in the different techniques of evaluation and assessment of candidates, which presents to the client company the candidates that best fit the profile sought, but not hire. The hiring is carried out directly by the client company, once the selection process is finished.