- Posted by Vidcruiter
- On October 23, 2012
- 2 Comments
- applicant hiring system, future of recruiting, screening automated, talent management system
Holding on to the promise of outsourcing
The future of outsourcing has been touted to move forward and increase its hold on the global labor environment. However there are also some experts who believe that outsourcing will begin to wane due to the realization of the many organizations that it is not a panacea to their budget worries and definitely not a strategic solution for sustainable their long term growth plans. These contrasting opinions on the future of outsourcing deserve a deeper analysis of outsourcing trends and how organizations perceive it as a long range labor solution.
How companies see outsourcing
Different companies can also have varied perceptions towards outsourcing. Some treat vendors as casual as they can and source manufacturing labor only. These types of companies are after slashing operational costs knowing that compensation make up a big chunk in their OPEX. This limited involvement makes outsourcing a viable solution to keep profitability up and longer engagement of such vendors can be expected. However there are also organizations that invite vendors deep into their strategic initiatives and allow the outsourcing of key division such as R and D. This has been happening for a long time now allowing the organizations to both cut costs and allow them to focus more on the front end of their business. In the context of efficient hiring, employment technology and employee screening services offered by recruitment outsourcing firms are seen as a viable hiring solution for rapidly growing multinational companies. This is also changing the perception of the organizations towards outsourcing key HR functions to vendors. These three examples of corporate thinking towards outsourcing can make the difference on the future of outsourcing.
Outsourcing and corporate flexibility
Outsourcing can only make sense when the outsourced functions are not the core of the business. Routine jobs and other support functions can be outsourced providing organizations a chance to save labor costs at the same time have complete control on the strategic front of the business. But even with this precaution and clear line of which functions to keep and which to outsource, outsourcing can put pressure on the organizations decentralization efforts. Outsourcing can mean getting the organization compartmentalized in a way that it hinders the company to be flexible as industry changes arise. This can seriously hurt the company’s effort to seize opportunities along the way. A heavily outsourced organization is moving towards specialization and stifles its ability to move fast as its competitors are learning to work in a different way. Consolidating organizational functions toward insourcing can take time and might even prove to be counterproductive. In this perspective outsourcing might lose its appeal in the future as organizations find it risky.
The big picture of outsourcing
Today there are many people and groups who are actively fighting the practice and proliferation of outsourcing. The motivations of these groups are well founded and understandable. Outsourcing can hurt the local workforce and cannibalize jobs that can result to local unemployment. But outsourcing can also mean better business for the organization and might just be the solution it needs to pick up pace and create more jobs back home. Aside from that the global labor community can also take advantage of it making international trade more vibrant over time. In the long term outsourcing can provide for business growth that allows everybody in the labor market, at home or elsewhere, to seize better work opportunities. On this macro level outsourcing can be a temporary phase that simply becomes a victim of its own success. And even that is not bad news.
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