According to the , compiled by Deloitte, it is no secret that this is a pressing matter that organisations are currently deliberating over, as Outsourcing has seen tremendous growth since 2014.
To better appreciate the decision required, one needs to have a clear understanding of what is meant by each model.
Outsourcing is a distribution of specific business processes to a specialist external service provider. This may be the result of an organisation not having the capacity to fill these functions internally or strategically wishing to focus on core business requirements.
Insourcing, simply, is the practice of utilising one’s own staff complement to complete the task at hand.
Some of the more commonly outsourced streams of business include:
Human Resources & Payroll
Web Design and Maintenance
“There are pros and cons to each model. The option to outsource, for example, does make sense within specific scenarios. It is a model that is usually based on fixed terms. It moves the onus of responsibility for the functioning of infrastructure and its successful operation to the party contracted to provide the outsourcing services. However, this means that management will have to relinquish a degree of control to the outsourced party – so that the service provider is able to assure the client of guaranteed uptime and reliable maintenance,” says Teryl Schroenn, CEO of Accsys.
The company is a member of the Business Connexion Group (BCX) and a national supplier of people management software and hardware solutions within the HR, payroll and time & attendance space.
While the selection is typically between Outsourcing and Insourcing, there is another choice – Co-Sourcing. This enables those who would like to maintain a certain level of internal control eg Outsourcing the payroll, while managing HR and ESS internally.
Accsys is of the view that decision makers need to evaluate the environment and core requirements of the business prior to the adoption of any service model.
“It is critical for any business to have the necessary infrastructure and governance in place before adoption and integration takes place,” Schroenn adds.
Article written by: Clara Namnick, Marketing & Communications Manager