FACULTY OF SOCIAL, FINANCIAL, AND ADMINISTRATIVE SCIENCES

SCHOOL OF PROFESSIONAL ADMINISTRATION

MEMBERS:

ANCAJIMA MACARLUPU KAREN

CRIOLLO GARCÍA RAINED

DANIEL PRIETO NEIRO

VALDIVIEZO PACHERRES JAIRO

course

Decision Making

THEME:

OUTSOURCING

TEACHER:
 IO
IINTRODUCTION

The present research allows us to understand everything related to the topic concerning

outsourcing. This work aims to have much more knowledge

about everything that outsourcing encompasses, as well as having objectives

specifics put into practice and achieve the application of everything learned from it;

develop our skills and knowledge gained on the subject to be addressed and

everything we will talk about in the

present activity.
 OUTSOURCING
EVOLUTION OF OUTSOURCING

In the first instance, after World War II, companies

they were looking for

concentrate the largest number of activities, in order not to depend on external suppliers.
This was undoubtedly a good strategy that was effective at first. Without
embargo
with the development of the economy and technology, it lost its effectiveness, as
never could a company's departments stay so updated and
competitive like the specialized agencies did in a certain area. On the other hand
In Mexico, outsourcing began 40 years ago. Initially, contractors were hired.
basic services, such as security and cleaning, among others. Later, in
The 1970s saw a growth of consulting agencies. Thus, for
it was easier for companies to hire a
independent third-party provider that creates, develops, and maintains a department
internally specialized. Finally, in 2013, the activities that to the greatest extent
were developed through the figure of outsourcing were those related
con:Personal; Tax processes; Information and Communication Technologies (ICT);
Business processes; Project management and control; Internal audit, and
Security in Information and Communication Technologies ICT. (Archundia
Fernandez & Martinez Almanza, 1990

CONCEPT
subcontratación
'subcontracting', 'outsourcing' or 'third-party contracting'In the business world, it designates the
process in which an organization hires other external companies to
cargo from their activity or production. Among its greatest benefits are the
ACCORDING TO AUTHORS:

According to Arturo Frías:It tells us: 'Outsourcing, by definition, is assigning to a third party

business entity functions that require decision making. To grant a concession

those areas that are part of the core business(Frias, 2012)
According to Brian Rother: He presents the following definition:Outsourcing really means

find new suppliers, and new ways to ensure the delivery of materials
raw materials, articles, components, and services. It means using knowledge, the
experience and the creativity of new suppliers who were previously unknown
recurred. (Rother, 2000)
According to Miguel Pérez García, he defines it asThe act of going to an external agency

to organize a function that was previously carried out within a company, which
definitively contracts a final service or product without any liability
some in the administration or management of the service delivery, which acts with
full autonomy and

independence to serve various users PÉREZ G, 1999

According to Charles HillStrategic outsourcing or subcontracting involves the decision to

allow independent specialist companies that focus all their capabilities and
their knowledge in a single class of activity, perform one or more of the
activities and functions of a company's value chain. The activity that
it is going to assign

external suppliers can encompass an entire function, such as manufacturing, or only

a class of yours
rthat formy dadrgive you a function.(Hill, 2008)

CHARACTERISTICS OF OUTSOURCING
both parties is very important to avoid potential problems or misunderstandings during the
project development.
Following the previous line, the contract must include a confidentiality clause if it
will work with data from external clients, to protect their identity and avoid
unfair competition by the outsourced professional.

Due to the advancement and increase of professionals in outsourcing, it arose

the figure of thedependent self-employed that exemplifies the possibility of a professional
self-employed who works only for one company, in a position of dependence
successive clients.

To carry out the outsourced tasks in the form of outsourcing, it is only necessary to
some meetings are required to plan the development of the work, an aspect that is
greatly facilitates thanks to the possibilities that the Internet offers for employment
remote. Thus, many companies can decide who to work with and outsource their
services, well in
professionals residing in other cities or provinces, or even in different countries.
(Romero, 2002)

OBJECTIVES OF OUTSOURCING

In general, the main objective of outsourcing is to save costs.

staff in Social Security and payroll maintenance. Accounting is simplified
y it is limited to the billing of income and expenses for professional services
received.

However, many companies wish to bet on outsourcing or subcontracting to

open new lines of business in less competitive sectors that generate more income
for the company through trained independent professionals for this.

Outsourcing is also a very useful innovation strategy in those sectors

professionals in which change is always present. Therefore, some of the examples
of
TYPES OF OUTSOURCING
Two ways to categorize Outsourcing are presented, the first is with respect to its
purpose that can be tactical or strategic, and the second is according to its nature:
(Chapman, 1999)

TACTICAL OUTSOURCING: This type of subcontracting is considered as such a

simple
outsourcing of a function that is not so essential for the company and generally the
reason
The main reason for implementing it is due to the need to reduce costs.

STRATEGIC OUTSOURCING: Strategic Outsourcing aims to create a

stable relationship with the company to which a function is delegated, is considered
a strategic alliance that is consolidating according to the interdependence of
the delegated task in relation to the others that make up the company, due to the fact that it
seeks to improve the quality of the delegated function, improve some service and/or increase
the capacity of it.

The second way to classify it is according to its nature:

 CO-SOURCING
This type of outsourcing occurs when both the company delegating the function
like the one that provides the service share responsibilities and in some cases the
risks of the
provision of the same.

 IN-HOUSE
It occurs when the requested services are performed on the premises of the
company that requested them.

 OFF-SHORING
OUTSOURCING STRATEGIES

Outsourcing is a contract that one company makes with another to carry out a
specific service towards this, as it saves a budget and achieves a
better quality in the work you want them to do. Therefore, two can be observed.
types of strategy in outsourcing, which are the following: (Schneider, 2004)

 THE PERIPHERAL: It is when the organization subcontracts to another

company to carry out a minor task.

 THE CENTRAL: It is when the organization outsources to another company to

I carried out an activity that has great importance.

OUTSOURCING DECISION-MAKING PROCESS

The process of making a decision involves six steps, which include
listed below: (Werther, 2005)
I. To do: In this step, the person in charge of the process must commit to
select and to
to implement the best decision, we start with an overview of the major aspects
goals to be achieved and the changes that it will generate in the organization, about
a strategy is generated.
II. Selection of activities: The tasks or functions that should be identified
they are going to outsource and based on that, search for and analyze specialized companies in
This activity is followed by a preliminary selection.
III. Choose the company: This step is very specific, as a group is analyzed.
of companies that are analyzed one by one concerning specific criteria
depending on the needs of the company and the experience and/or level of
specialization of the company that will provide the service, also begins to
detail the clauses of the contract.
V. Transition: At this point, the company has already been selected and has
detailed the contract, so now a transition plan is presented in the
What are the progress measures that the company must have that is ...
contract.
VI. Manage and improve: Because outsourcing requires
the structure must be reviewed by both parties, so it should be put on
someone in charge of overseeing the operation, a system of standards is established
to measure the efficiency of the service and to verify that they are being met
proposed objectives. Subsequently, a feedback system is developed and
Evaluations are carried out on it.

ADVANTAGES OF OUTSOURCING

Some of the advantages of outsourcing are the following: (Gutierrez, 2009)

 Abaratameento cost reduction: especially when subcontracting to

a small company or belonging to aee

mopnyocoorer (exploitation).
This impacts a greater profitability of the company.

 Mayor effectiveness, since specialists in the area and the matter are outsourced
timely matters that are desired to be addressed, which relieves the company of costs and

training times, purchasing materials, etc. Outsourcing produces

results much faster.

Greater specialization, given that the subcontracted work is done to measure

of
the needs of theclientevaluating the conditions of each specific case.

 Me orit riis gos, as it is enough change

r of p rOviedor external services
DES/kENi.AJ« S.DELL.Q.U?SQ.URCJ?iG

Some of the disadvantages of outsourcing are: (Gutierrez, 2009)

Discredit, in the case of the exploitation of underdeveloped economies for

to carry out an expensive job at a much lower price, paying amounts well below

below the considerable ethical. Outsourcing always incurs these risks.

Lack of loyalty from the worker, as subcontracted employees do not receive

their payment directly from the contracting company, but from the subcontractor, so

they do not necessarily feel part of the project they are working on.

Deterioration of working conditions, as subcontracting is more

cheap and efficient, which is why many companies choose not to grow or not to incorporate

new fixed-term staff (and with all their legal benefits), rather than hiring

an outsourcing that completes the work in a specified time.

Loss of control, as it is necessary to fully trust the subcontracted company.

If this is from another cultural region, for example, problems may arise from

understanding.

Lack of exclusivity on the part of the subcontracted company, which can

turn into episodes of fraud, industrial espionage, etc.
Outsourcing in hotels

There are services that hotels often subcontract, and there are specialized companies in
Hello. Many hotels outsource cleaning, both of rooms and other areas.
of the hotel, the laundry and the supervision.

Sometimes companies that specialize in these tasks are subcontracted for all types of clients.
but there are also other companies that specialize in carrying out these activities exclusively
for the hotel sector.

2. Outsourcing of DIGITEX call center - MOVISTAR

This is one of the externalized activities that we all know. A very clear example.
The companies that carry it out are the telephone companies. Many of us have experienced it.
that we have received a call from a telecommunications company and the person who speaks to us
they have a Latin American accent. The first thing that comes to mind is that those operators are in
Spain, but the truth is that many times we receive calls from America.

In the case of the United Kingdom, several telephone companies have their call centers in India.
for customer service.

But it's not just telephone companies that outsource a call center. There are
companies dedicated to this activity that offer service ofhe is going toand surveys 24
hours of the day in various languages.

3. Outsourcing agroindustrial

Trupal Company (GLORIA GROUP) is a paper company dedicated to manufacturing

papers and cardboard made from the shredding of sugarcane, final process of the
CONCLUSIONS

 Parthe conclusion
r We say that Outsourcing is the subcontracting of third parties.

para take on certain complementary activities to a main activity

inside

of a company; we can also say that it is a process through which a

organization outsources part of its activity, that is to say it hires a company
external

to manage a part of your company.

 We conclude that the outsourscent is hererdeedrwherertocentrar each of the activities

specific to the company in order to reduce risks that may arise

in the organization.

 Concluding with the types of outsourcing, these are of vital importance as

From these types, we will see which one we need to use depending on the problem.
that emerges in the organization and in this way see how to

subcontracting of companies.

 Within the process, it is concluded that they are very important steps for the

outsourcing since thanks to it we can conduct a clear investigation and

It is necessary to choose the company well in this way.

subcontracting.

 For the advantages, we say that the potential benefits of using outsourcing

a gradual reduction of costs, a more dedicated focus on activities

References
Archundia Fernandez, E., & Martinez Almanza, M. (1990).Origin of
Outsourcing.Spain: International Academic Services S.C.

Chapman, J. (1999).Outsourcing Structuring.USA: Cambridge University Press.

Frias, A. (2012).10 Logistics Strategies.Mexico: CENGAGE Learning.

Gutierrez, T. (2009). Outsourcing high level business. USA

Translation not possible for URLs.
improvement

Hill, C. (2008).Strategic Management.

PÉREZ GARCÍA, M. y. (1999).Labor Flexibilization and Outsourcing.Colombia: 1st ed.

Santa Fe de Bogotá.

Perez, J. (1999).Outsourcing.COLOMBIA: htttps://definicion.de.outsorcing-pag.20//.

Roberthson, B. (1997). Outsourcing. Objective.Mexico: NORM PUBLISHING GROUP.

Romero, A. (2002).CHARACTERISTICS OF OUTSOURCING.COLOMBIA: Editorial
Limusa.

Rother, B. (2000).Outsourcing.Mexico: Ebook-Central-Administration//.

Schneider, B. (2004).Outsourcing: business management tool.Colombia

Imprelibros S.A.- Editorial Norma Group.

Werther, M. (2005).Human resources management. OUTSOURCING.MEXICO: ED.

McGraw-Hill.