| As a company, it's important for you to know | | | | Another department can be outsourced is |
| your strengths and weaknesses. Then, with this | | | | information systems (IS) or information |
| knowledge, you can choose to do what you are | | | | technology (IT). In this area, too, professionals |
| good at and pay another company to do what | | | | who specialize in network setup and maintenance |
| you are less good at. It just makes sense. For | | | | can give a company excellent service. |
| example, one area that you may not want to | | | | Outsourcing software development and technical |
| deal with is the warehousing of your inventory | | | | support to companies in foreign countries is in the |
| and finished goods. If your company is located in | | | | news these days. This solution is attractive to |
| Texas, you can hire a Texas contract warehouse | | | | companies because these foreign workers can |
| or a Houston 3PL (third party logistics) warehouse. | | | | live well in their countries for less money that is |
| If you are in California, try a California contract | | | | required for domestic employees. (However, |
| warehouse. | | | | domestic workers suffer deprivation when this |
| In the past most companies considered it to be | | | | work is no longer available to them.) Two |
| good business to set up the business and do all | | | | disadvantages of this foreign outsourcing are the |
| work within the company. The founders of the | | | | time difference and the language barrier. |
| corporation would choose the products to be sold | | | | Outside operations are used by the manufacturing |
| and would do all of the design work. This is the | | | | department. If the company is manufacturing its |
| core of the corporation. Another core activity is | | | | own product and has not outsourced the |
| sales. The sales force needs a strong loyalty to | | | | manufacturing, there may still be some |
| the company and the product and a deep | | | | manufacturing processes that they can't perform |
| knowledge of the product. | | | | or choose not to perform. In this instance, the |
| Over time, it was discovered that a company | | | | partially finished material is sent to a vendor, who |
| could be leaner and meaner if it concentrated on | | | | then works on the material. One example of a |
| these core departments. That meant that maybe | | | | process that is often performed by an outside |
| someone else could do some of the tasks better | | | | vendor is heat treating. |
| and more efficiently. Two words apply to this | | | | Finally, the company may not want to track its |
| type of work: outsourcing and outside operations. | | | | own inventory in their own warehouses. Or |
| One department that can be outsourced is human | | | | maybe they have some warehouse space but |
| resources (HR). There are many companies that | | | | may need additional space at certain times of the |
| specialize in handling the benefits for a company. | | | | year. These companies would want to make use |
| These companies can help other companies to | | | | of contract, or 3PL, warehouses. |
| select the best medical and other insurance for | | | | Theoretically, a company could consist of only the |
| the lowest cost. Other HR-related tasks include | | | | core departments, with all other work being |
| processing the payroll. For hiring new employees, | | | | outsourced. |
| recruiting companies are available. | | | | |