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    Home»Business Tips»Outsourcing: important basic points you need to know
    Business Tips

    Outsourcing: important basic points you need to know

    Austin FieldsBy Austin FieldsApril 16, 2020No Comments3 Mins Read
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    Outsourcing is the process where a company stops performing one or more activities carried out by directly hired workers and transfers them to another company. This service contract is made under a contract. In this context, the company that contracts the services of another company is called “parent company”, and the contracted company is called “third company”. The outsourcing process has always been widely used for companies’ core activities, as outsourcing was not allowed for core activities. However, with the recent change in the law, the hiring of third-party companies to perform the core activity was also released. In addition, the outsourcing process can only be done between companies.

    Why outsource?

    Outsourcing is capable of bringing a series of gains to your business, leaving aside secondary concerns and the possibility of keeping managers more dedicated to the company’s main strategies. Another benefit that outsourcing offers is being able to count on professionals, and teams more specialized in a certain activity, being able to execute demands with higher quality.

    How to outsource?

    For greater security of your business, it is important, before entering into a contract, to seek company references in the market with other professionals. It is also valid to check the registration status of the company (third party) and employees.

    There is little care at this point and it is essential to have knowledge of the quality of the service provided by the company, in addition to the specialization of employees, all of this even before entering into an outsourcing agreement.

    • The service provision contract must be made with all possible details, specifying the type of service being contracted, how these activities should be carried out, the number of people needed to meet the demand, and the times that the tasks will be performed.
    • Also include in the contract all job specifications within your company, for example, where the employee will perform the activities, what time the employee will have to rest, the equipment that will be used, among others.
    • Also indicate the form in which the payments will be made, the dates and the amounts to be paid for the contracted services. The duration of the contract must also be specified, but it is possible to include hearing aids for automatic renewal if applicable.

    The documentation that the contractor must submit regularly is also important, as, for example, the social security collection guides. This proves that it is following the labour laws, ensuring that there will be no future problems.

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    Austin Fields

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