Introduction
Companies face a large number of changes and trends, which is why they see the need to have a global vision, to grow without using more capital, the need to respond to the threats and opportunities of the economy, the aging of the workforce, cost reduction and the consumer.
That is why every day more companies in Mexico decide to employ their workforce through third parties in an Outsourcing company. They seek to obtain the same for less money, not generating future costs for the company through possible seniority payments, etc.
This is an alternative that allows achieving high performance in specific areas, thereby obtaining a light and flexible organization.
The main objective of the company is to reduce direct expenses, based on subcontracting or outsourcing services that do not affect the main activity of the company.
Outsourcing
It is the action of resorting to an outside agency to operate a function that was previously carried out within a company. Also known as outsourcing, lean management, or joint manufacturing companies. It acts as an extension of its business, but is responsible for its own administration.
It is a management strategy through which a company delegates the execution of certain activities to highly specialized companies.
Meaning of Outsoucer: It is an external provider in order to streamline it, optimize its quality and / or reduce its costs.
Types of Outsourcing
Total Outsourcing: Involves the transfer of equipment, personnel, networks, operations and administrative responsibilities to the contractor.
Partial outsourcing: Only some of the above items are transferred.
Why do companies use outsourcing
- Reduction and control of operational expenses Avoid the allocation of resources based on the company's reason for being Efficiently manage complicated functions Better focus the company Better access world-class capabilities Accelerate reengineering benefits Share Risks with suppliers and service providers Allocate resources for other purposes Seeks intense and direct cooperation between the client and the supplier.
Benefits of using outsourcing
Outsourcing is a useful tool for the growth of companies for reasons:
- It is cheaper. Reduction and / or control of operating expenses Concentration of business and disposition of capital funds Access to cash Easier management of difficult or out-of-control functions Availability of highly trained personnel Greater efficiency Minimization of investments and reduction of financial risks Greater flexibility in the organization Better control and greater security Increased competitiveness Lower costs Handling of new technologies Faster deployment of new developments, applications, and better processes.
Stages of the Outsourcing process
1. Project start:
The scope of what is considered for outsourcing is identified, the criteria, the initial important brands and the factors for the initial decision making are established, in addition the resources are assigned to carry out the project.
2. Evaluation:
The feasibility of the outsourcing project is examined, its scope and limits are defined, and the extent to which the project can satisfy the established criteria is reported.
3. Detailed planning:
The criteria for the tender are established, the requirements are defined in detail and a list is prepared. A plan is provided for the bidding process, documentation, description of services, draft service level agreements and a strategy for negotiations with suppliers.
4. Contracting the service:
A contractor is selected as a result of the bidding process, a backup provider is identified. The hiring includes external consultants who will participate with the potential contractor and its partners. The contract stipulates the purpose of the service, the duration and the performance evaluation criteria.
5. Transition:
The procedures for the administration of the outsourced function are established. Formal responsibility for operations in that area, personnel and assets is transferred according to the agreement. The core team and the function manager participate in this stage.
6. Periodic evaluation and administration of the project:
In this phase, the contract is reviewed, comparing it with the agreed service levels. Negotiations are being planned to take into account changes and additional requirements. The representative of the contractor, the person in charge of the function, the person in charge of the administration of the contract and the supplier participate in it.
Risks of using Outsourcing:
- Negotiation of an inappropriate contract Difficult choice of supplier Risks due to supplier failures Excessive dependence on external companies Failures in contractual control systems Risks inherent in the management of Human Resources by the contractor and that may indirectly or indirectly affect the company Confidentiality may be threatened.
Areas of the company that can be outsourced
The Outsourcing process not only applies to production systems, but also covers most areas of the company.
- Outsourcing of Marketing activities Outsourcing in the Human Resources area Outsourcing of secondary activities. (It is one that is not part of the main skills of the company).
Areas of the company that should not go to Outsourcing
- Management of strategic planning Treasury Control of suppliers Quality management Customer service Distribution and Sales
Risk factors to assess before making a decision
Operational risk: occurs when outsourcing or outsourcing does not satisfy the need for which it was hired, in terms of efficiency and timeliness.
Financial risk: that your real and final cost is higher than you expected.
Occupational risk: that your organization has to suffer compensation for lawsuits and / or fines and sanctions from the authority for non-compliance with labor and tax obligations incurred by the outsourcing service provider.
Outsourcing and its impact on the Mexican economic system
In Mexico outsourcing is the way in which companies rely on the contracting modality. However, under the term of outsourcing, in Mexico companies of a very varied nature are usually designated, from which the outsourcing of personnel offers many advantages, but also has its risks, such as joint liability in matters of social security.
Providing surveillance or cleaning services, going through those that provide storage, data processing and / or maintenance to computer equipment or systems, to those that provide temporary personnel or payroll processing. Worse still, there are those who consider outsourcing to be a way to avoid tax and labor obligations.
From a strictly labor point of view, outsourcing or outsourcing should be understood as a resource by which a company can be assisted by another for the performance and / or development of certain activities, which allows minimizing administrative and social security burdens.
The law on social security for labor outsourcing
According to the provisions of numerals 12, section I and 15-A of the Social Security Law (LSS)
"Those companies that use the services of subordinates hired by others are jointly liable for compliance with the duties that the LSS and its regulations impose on employers."
This means that if outsourcing personnel providers do not have sufficient elements of their own to meet these obligations, they become labor intermediaries in the eyes of Social Security; Consequently, the companies benefiting from the work of this type of worker are the ones who will respond to said Institute, because they received subordinate services, an essential element to be subject to the Obligatory Social Security Regime.
The INEGI census also highlights the significant increase in subcontracting: “outsourcing”, a practice that entails low wages and a limitation of worker rights, affects 14 out of every 100 new hires. Five years ago, this ratio was 8.6 employees per 100 on average.
conclusion
Outsourcing is an alternative that allows achieving high performance in specific areas, thereby obtaining a light and flexible organization. Due to this, companies in Mexico decide to use their workforce through an Outsourcing company, seeking to obtain the same for less money, not generating future costs for the company through possible seniority payments.
For this reason, it is necessary that to hire an outsourcing service provider, it is necessary to verify that it is working with a serious company, that it provides professional advice and that it complies with its tax and labor obligations.
To verify that they are serious and responsible companies, they can confirm that they are part of the Mexican Association of Human Capital Companies (Amech).
References
- Steels, 2009, Pavisich, 1997, Gallegos, 2010.
