Think more expansively: beyond potential cost savings from outsourcing
Outsourcing the Relocation Function
Relocation function for any firm depends on the activities it does. As per the 2003 SHRM survey, it has been analysed that more than 45 percent firm, allows the outsourcing foe its relocation function. Relocation function can increase the substantial benefits to the firm and also helps in creating the relationship with the firm or creating the investment relationship management. Most of the firms for this engage as the gatekeeper role to ensuring that the policies and other legal issues should be as per the standards. It also makes sure that the company’s strategy will be to ensure the product quality and service delivery. As mentioned above outsourcing is the critical component among the firms.
It connects to the many firms to each other and increases the corporate relationship among them. Outsourcings also reduce the burden of the responsibilities from the firms. With the increased pressure on companies to meet corporate governance compliance issues, it’s important for the gatekeeper to be educated and kept up to date on the latest laws affecting compliance from a tax and legal perspective.
For expanding the business consider an example where the company A wants to set up a customer marketing referral program then company A will contact to company B who is specialized in affiliating or setting up the referral systems via use of mobile, telephone , website or other offline activities. If the company A uses the services of company B then its cost will be reduced as if it hires some people for designing the system and then setting up the system will cost high as this is not company’s future work but company B ‘s future work.
Generally the company type of B will charge $10 to $50 for the referral program for a certain number but in case of in-house it may charge you $20 to $80 which is not profitable. So this example explains that outsourcing is more important in some cases.