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Outsourcing Versus Out-Tasking
by Ben Vestic Tue, 05/29/2012 - 10:28
Many companies are quite confused in the way they should implement outsourcing and out-tasking in their businesses. Some may not even know the difference between the two. Outsourcing, over the years has greatly changed how people do their business and how these people distribute tasks essential to the company. However, although outsourcing is a widely known company activity, the difference between the two and the best times to use whichever is not yet clear to everyone. So, to save everyone from futile researches, here is a quick guide to outsourcing and out-tasking: the differences between the two and which to use in different kinds of situations.
In terms of commitment, a company providing you with outsourcing services will give you full commitment, whereas, out-tasking will provide you with a limited one. The outsourcing service provider will take control in all parts of the operation on a long period of time as it assumes to be a part of a specific company or business.
On the other hand, out-tasking will provide the clients with limited commitment levels as they will only be in charge with the resources a client wants them to provide, at a shorter period of time and at a specific price for every service and resource rendered.
With outsourcing, all the operations will be handled by the outsourcing service provider. The working model, all the processes and all the tools that will be used to successfully accomplish all the processes according to plan will be provided by the supplier of the service. This means that the company seeking for the service will completely turnover everything and let the service provider do the entire job.
On the other hand, when you choose out-tasking, all the processes and working model will still be in the hands of the company or business seeking the service. This means that there will no changes with the old operating model that the company is doing since it will all be followed and adapted by the out-tasking service provider. The company or business will manage all of the processes and the service provider will only be accomplishing these. Also, the risks involved with the processes still remains with the company or business availing the out-tasking services.
This part is crucial since a wrong move in choosing between outsourcing and out-tasking can make or break your company so you should know where to use these two properly.
Outsourcing is used when you need something on-going within the company to be accomplished. This means that when you hire an outsourcing provider, they will most likely be a part of your company for a long time. For example, you need a service provider with your advertising agendas. While you do not have to make TV ads or advertising campaigns everyday, you need an advertising agency to provide one for you when you need it. That is when you need to establish a relationship with an advertising agency that can provide you with this.
Whereas on out-tasking, you just have to use this for a one-time project, meaning for a shorter period of time. This means that a project would be over for a certain period of time and you just have to form an adhoc team to accomplish the project. After the project has been done, you will no longer need the services of your out-tasking provider.
About the author
Hello. I'm Ben Vestic, a business improvement nut and mechanic of small business website design. I like to write ways in which other owners can improve their brands and procedures to take their company up a notch.