Outsourcing. the boom of the 21st century

The word Outsourcing is derived from the English term that is made up of two words in turn, the first "out" which translated into Spanish means outside and "source" whose meaning is source or origin, this expression refers to an external source, the which in the business world is used to refer to outsourcing, outsourcing or outsourcing.

The purpose of outsourcing is to find external sources that can function in an area of the company more efficiently, obtaining more time and resources to focus on the key aspects of business management.

Much of the literature indicates that outsourcing is carried out mainly to lower costs and the second cause is because the companies dedicated to this have the experience and the machines and tools to carry out the tasks in a specialized way.

The outsourcing services in human resources with the highest demand are pure outsourcing and fiscal outsourcing, through these the hiring of personnel is carried out.

However, some research on the subject assures that, at least in Mexico, subcontracting gives rise to one of the most cruel social frauds and activities against millions of women and men who in our country make a living from their work.

Outsourcing: the "boom" of the 21st century

Outsourcing can be defined as that process that is used by a company in which another company is hired to help develop a certain area of the contracting company.

(Wayne & Robert, 2005) considered Outsourcing as: ”the external supply whose process consists of transferring the responsibility of a service area and its objectives to an external provider, driven by the need to reduce costs caused by scarce income or more budgets. limited. " For (Chase & Aquilano, 2005) “subcontracting is the action of moving some of the internal activities and decision responsibilities of the company to other external providers. Subcontracting involves more than common purchase and consultation contracts, since not only the activities are transferred, but also the resources that allow them to be carried out, including personnel, facilities, equipment, technology and other assets. "

Outsourcing is a common practice used today in both public and private companies and is considered one of the largest elements of business strategy, companies hope that by using this tool their practices will benefit, however there are a number of risks that companies must face if outsourcing practices are not successful within them.

However, there are both risks and benefits of this practice, among which are:

Benefits

Lower costs Increase the quality of activities by hiring specialized personnel Increase in personnel

Risks

Entry of unknown personnel to the company Difficulty in selecting suppliers High service cost

(Kremic, 2006)

Some history

With today's growing globalization and evident technological advances and changes, companies have found it necessary to use outsourcing more and more.

The Outsourcing practice had its beginnings from the beginning of the modern era. However, this concept is not new, as it is known that some competitive companies used it as a business strategy.

It was at the beginning of the post-industrial era that competition in the markets began, which sparked the practice of the first forms of outsourcing. Before the end of the Second World War, most companies carried out the greatest amount of activities so that they did not depend on suppliers.

However, this practice became obsolete with the constant technological changes due to the difficulty of the departments of a company to stay as updated and competitive as independent agencies that only specialized in one area did. (Martinez & Fernandez, 2015)

The term Outsourcing was introduced in 1980 with the purpose of describing the growing trend that some of the large companies were transferring their information systems to suppliers, a clear example of the breadth of their growth are the numerous companies that use this service, among which is the (CODETEL), this company was one of the first to implement this way of working.

With the emergence of outsourcing, companies such as Dell and AT&T Wireless, which were the pioneers in call centers, used resources from India and Pakistan to solve their technical and customer service services, through computer systems that allowed operators to have available the information necessary to serve your customers.

However, this way of working brings about certain problems since they had complaints about communication problems between the clients and the substitute staff, because as might be expected, the accents were different, in addition to the vocabulary used.

Currently, companies must be even more interested in satisfying customers and that is why there are companies that not only offer service in the customer's language, but go further, since they have a system that identifies the region of the world that is being talked about and with this allows the operator who provides the service to answer using the accent and idioms of the area where the call is generated…

Types of outsourcing

There are different types of Outsourcing and at the same time these are classified according to the areas of the company in which external support can be received, the most common types are listed below.

Outsourcing of financial systems Outsourcing of accounting systems Outsourcing of computer systems Outsourcing in the Human Resources area Outsourcing of administrative systems Outsourcing of secondary activities

If we talk about human resources, the outsourcing services in human resources with the highest demand are pure outsourcing and fiscal outsourcing, through these the hiring of personnel is carried out.

Pure outsourcing and fiscal outsourcing as they are commonly known make different types of services available to companies in the area of human resources.

Pure Outsourcing:

It is known as the use of resources outside the company to carry out functions traditionally performed by internal personnel and resources. It is therefore a form of administration by means of which an organization delegates the execution of some activities to companies that are specialists in that activity or activities.

At the same time, this service is made up of a series of steps such as the recruitment, selection and hiring of personnel who will be in charge of carrying out the specific tasks that the company demands and whose objective is to do it faster and in a better way, saving time. companies to be able to dedicate themselves to their main activities.

Pure Outsourcing is offered to a greater extent by companies that are in charge of the entire process of the personnel area, making it almost easier for large transnational companies to manage this area.

Among the services provided by this class of companies are the following:

Recruitment, Selection Continuous evaluation of personnel

An example of this type of service is Manpower, which is a leading company in the supply of temporary personnel for companies and its main clients include Sabritas.

Fiscal outsourcing

This type of outsourcing is also known as strategic payroll outsourcing in which the personnel that already exists in the contracting companies are partially transferred to the outsourcing service provider under different conditions and plans so that compliance with tax obligations can be carried out. with the lowest possible cost.

By doing this, the outsourcing company is fully managing the client's payroll and thus reduces the administrative and fiscal burden that the company had, helping it to eliminate in some cases ISR withholdings, in addition to Social Security contributions, contributions to the fund for housing and payroll tax.

The dark side of outsourcing

However, some research on the subject assures that at least in Mexico subcontracting, outsourcing, employer substitution or hiring for fees, gives rise to one of the most cruel social frauds and activities against millions of women and men than in our country they live off their work.

And in this way they are deprived of their most essential rights such as: the salary that by law corresponds to them and that is relative to their work, in addition to a decent working day, which is so important in our days social security and job stability. All this is what each worker needs to face the challenges of a growing society.

However, these investigations do not refer to outsourcing as a temporary and specialized service that one company provides to another. Since it is logical to say that if a Sony television is purchased, the maintenance tasks can be carried out by that same company with personnel from the company itself.

Rather, these investigations refer to the growing number of contracts that are carried out in order to deprive workers of their rights, abuse many times ignorance regarding labor rights and laws that defend workers by giving them precarious contracts, in addition of omitting the payment of profit sharing, which is a business practice that has been gradually decreasing and is currently a constitutional provision that is on the way to extinction.

In addition, many companies with these practices also fail to comply with tax and social security obligations. This situation has been encouraged with the complicity of the authorities who, far from taking measures in this regard, allow many companies in the country to carry out these practices with complete freedom.

It should be mentioned that due to this situation, these forms of disguised outsourcing have gained fame in all branches of the industry, with the exception that it was the best way to achieve greater competitiveness and productivity in the organization.

“Felipe Calderón's initiative to reform the labor law in 2012 proposed: to create the subcontracting regime through which the employer called the contractor executes works or provides services with his workers in favor of a contractor who sets the tasks of the contracted works. Calderón, irresponsibly and trapped by the clique that advised him on these issues, established only two conditions to authorize this form of personnel supply: that the contract be in writing and that the workers be registered in the social security system, nothing else." (Mayor, 2013)

However, this proposal gave freedom to even greater abuses than those that already existed, turning outsourcing into one more way of harming millions of people who earn a living day by day and whose conditions are progressing to be even worse in Mexico.

It is of the utmost importance to regulate outsourcing practices in the world as it could become a form of labor exploitation disguised as business strategies used by corporate giants.

Conclusion:

Outsourcing is a business tool that allows companies to save time, money and effort when carrying out their routine activities, however this technique is often used to harm employees because when using outsourcing they are deprived of the rights that It corresponds to them by law and they are so necessary for a quality of life.

There is a fine line between being an avant-garde and competitive company that uses outsourcing to improve and efficient its processes and being a company that profits and exploits workers, the regularization of the laws that monitor this activity in developing countries it is essential to maintain order and integrity for the workers of the world.

Bibliographic references

Mayor, JA (July 27, 2013). The Day. Obtained from La Jornada: http: //www.jornada.unam.mx/2013/07/27/opinion/013a1polChase, & Aquilano. (2005). Management of operations, production and supply chain. McGraw Hill. Kremic, T. (2006). Outsourcing decision support: a survey of benefits, risks, and decision factors. NASA Glenn Research Center, Cleveland, Ohio, USA., 482. Martinez, MA, & Fernandez, EA (2015). Outsourcing and tax planning in Mexico. Wayne, M., & Robert, N. (2005). Human resources management. Mexico: Pearson Prentice / hall.

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