business outsourcing

Outsourcing, also known as resource outsourcing or resource outsourcing, refers to an enterprise integrating and using its best external professional resources to reduce costs, improve efficiency, give full play to its core competitiveness, and enhance the enterprise's ability to respond quickly to the environment. A management model. In order to gain more competitive advantages than simply using internal resources, enterprises hand over their non-core businesses to cooperative enterprises.

Business outsourcing advantages

First, business outsourcing allows companies to focus on core businesses. By implementing business outsourcing, enterprises can transfer non-core businesses and use the advantages of external resources to make up for and improve their own weaknesses, thereby focusing their main efforts on the enterprise's core business. According to your own characteristics, you specialize in a certain field or a certain specialized business, thereby forming your own core competitiveness. Second, business outsourcing allows companies to improve resource utilization. Implementing business outsourcing, enterprises will concentrate resources on core business, and professional outsourcing companies have the technology and knowledge to complete a certain business more effectively and economically than the enterprise. Business outsourcing maximizes the role of an enterprise's limited resources, accelerates the enterprise's ability to respond to the external environment, strengthens the flexibility and agility of the organization, effectively enhances the enterprise's competitive advantage, and improves the enterprise's competitive level. Business outsourcing has attracted increasing attention from enterprises in the market economy competition because it can promote enterprises to concentrate limited resources and capabilities, focus on their core businesses, create and maintain long-term competitive advantages, and achieve the goals of reducing costs and ensuring quality. This is the main form taken by virtual enterprise operations. First, we must identify the company's core competitive advantages, concentrate the intelligence and resources within the company on those activities with core advantages, and then outsource the remaining other corporate activities to the best professional companies. Every team in a virtual enterprise is located in the "strategic link" of its own value chain, pursuing the realization of its own core functions and virtualizing its own non-core functions. For example, Boeing, the world's largest aircraft manufacturing company, only produces cockpits and wingtips;Nike, the world's largest sports shoe manufacturing company, has never produced a pair of shoes, and so on. The virtual cooperation method of business outsourcing not only makes the production costs of different products of enterprises tend to be lower and the efficiency is improved, but also promotes enterprises to continuously adapt to the changing trend of market demand and reduce risks, thereby creating a competitive advantage for enterprises to operate highly flexibly. Third, business outsourcing can reduce corporate risks Effective outsourcing can save money and risks, and risks are transferred to production companies, which is the only way for brand companies.