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RMS
7447 E Berry Ave
Suite 200
Greenwood Village
Colorado, 80111
Ph (303) 741-9911
Fax (303) 488-2698
info@rms-peo.com
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Why Outsource? |
Outsourcing by definition is completion of work for a
company by another company other than the original
company’s employees. Many companies purchase a product or
a service from an outside supplier rather than producing
the product or service in-house. The company that is
outsourcing forms a partnership with the outsource
provider to gain efficiencies in productivity and cost
savings of up to 25 to 30 percent.
The areas that are outsourced most often include 401(k)
programs, employee benefits management, payroll,
recruiting services, compliance management, training,
coaching and special projects. Statistics show that 94
percent of all companies outsource at least one human
resource function.
How do you know if you should outsource? Some of the
reasons for outsourcing include cost savings, higher
service quality and access to expertise and technology.
Outsourcing can also improve overall quality because you
will have the ability to more effectively utilize your
staff. Further, the outsource provider can offer neutral
advice without regard to office politics; supply a service
or product in less time, and of course maintain your
sanity.
Outsourcing isn’t always the answer; there may be some
potential disadvantages to consider. Namely, the activity
you are outsourcing is not entirely eliminated. You will
still need someone to be responsible and accountable for
maintaining communication and coordination with the
outsource provider.
In deciding whether outsourcing is suitable for your
company evaluate internal resources and determine
potential savings that may be gained. As with anything,
the number one way you are going to find a reliable
outsource partner is by communicating with others who are
utilizing similar services. |
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