Through this interesting article you will know what business assistance is, its benefits and disadvantages, current outsourcing, its current role and importance.
What does business assistance consist of?
It consists of a set of auxiliary services, provided by a specific company (located abroad), through subcontracting to another state company, in technical, financial, administrative and control matters, at a certain time. Through this support, the company seeks to improve its professional management.
This business assistance seeks the optimal insertion of the company in the productive sector and its proper financial management. Today, with globalization, new opportunities have arisen in this area, especially in developing economies. This business assistance reached its peak in the 1980s.
Now, before implementing this type of strategy in any company, it is necessary to know how it can benefit its results.
Benefits and Disadvantages of Business Assistance
Among the main benefits generated by business assistance, you can find:
- Avoid fraud and bad decisions that compromise unnecessary expenses.
- It allows an efficient development of the company.
- Guarantees better control of personnel.
- It allows to obtain benefits in large-scale investments.
- Costs reduction.
- Better use of capital.
- Optimal benefits.
Among the disadvantages generated by business assistance, we can find:
- Risk of confidential information being leaked.
- Communication is weakened.
- Quality is affected by the diversity of projects attended at the same time.
- Delays in service.
The current outsourcing in business assistance
Currently there are different styles and trends when it comes to outsourcing, within the framework of business assistance.
What determines outsourcing?
Outsourcing is also called outsourcing, outsourcing or outsourcing and is determined by:
- The impacts generated after certain crises.
- Modernization and globalization.
- Productivity and competitiveness strategies.
- The polarization of the productive sector.
Types of outsourcing
On certain occasions there are internal or external subcontracting of the company. There are different types of outsourcing, such as:
According to its purpose
Depending on its purpose, outsourcing can be of two types, whose characteristics are quite particular:
- Tactical outsourcing: Seeks to reduce costs through outsourcing of tasks, which are not so relevant to the company.
- Strategic outsourcing: Seeks to solidify the relationship and interdependence with the company to which certain tasks were outsourced.
According to its nature:
As for nature, this type of strategy can vary greatly, however it is possible to summarize its characteristics in the following ways:
- Co-sourcing: In this case, both companies share both the delegation of responsibilities and the risks regarding the services that are being provided.
- In house: In this case, the services demanded are provided within the same company that demanded them from the other company.
- Off-shoring: The services are requested abroad, since it generates lower costs than the services provided by state companies. It is a process that is also known as offshoring.
- Off-site: here the services requested are given in the facilities belonging to the company that provides the service, in this case the foreign company.
Role and importance of business assistance today
Business assistance allows you as a company to delegate to the company you are outsourcing, those functions that are not so significant for your company as such. Thus you manage to dedicate yourself exclusively to those core activities (considered the most important), which are those that serve as the basis for production and obtaining profits.
Today, the trend towards business assistance has been increasing, as a result of the need for companies (especially those in developing economies) to respond to the various technologies and complexities of the market to which they are face, to keep staying on the mat.
Finally, the advantages derived from business assistance and how this activity can influence the results of any organization with proposed objectives has been exposed.