Currently, adaptation, innovation and dynamism are keywords for a company to survive and prosper. For this reason, traditional organizational structures, which are more branched, verticalized and extensive, are outdated, since the focus of management becomes dispersed.
In this model, in which we perceive the presence of all the sectors and departments necessary for the company to function – from cleaning to the IT team – resources are normally allocated inefficiently, and this has an impact not only on productivity, but also on balance. entity’s finances.
What to do in this new scenario? To adapt to the market, many companies have adopted a series of very efficient strategies, which can be easily adapted by small, medium and large entrepreneurs. As for the organization chart of the company, organizations have adopted the network structure, betting on partnerships or outsourcing.
With this, they guarantee dynamism, since they can easily disassociate themselves from one type of service to adopt another; productivity, as they can focus on the core activity of the business; and financial balance, by cutting a series of labor expenses and internal infrastructure, for example.
However, while outsourcing is a valid strategy for organizations, hiring in-house also has a number of advantages. Everything will depend on the type of company and its ambitions. It is for this reason that we decided to address this issue below. Keep following and check it out!
Advantages of the Internal Team
Of course, not every service performed or product manufactured by a company can be outsourced and, depending on the type of organization, having a series of internal departments is a strategy that, although more expensive, can offer a series of benefits.
This is because, in certain businesses, control over this type of activity is essential, mainly for strategic reasons, such as controlling confidential information, a greater degree of commitment, among other benefits. Next, we list the main advantages and disadvantages of internalization.
Control of activities
One of the main reasons for having internal teams is the greater degree of control over the company’s activities. In addition to retaining internal information, it is possible for the organization to directly monitor its employees, demanding results and exercising greater control over each action. In addition, it is possible to design and monitor internal processes more concisely.
Another great benefit of maintaining internal teams is the fact that, if the company manages to maintain a positive organizational climate, the teams will be more committed to achieving the objectives and goals stipulated by it. In this way, when management and motivation work correctly, it is possible to ensure that each employee ‘wears the shirt’ of the company.
Finally, the last great asset of the teams is the fact that it is possible to promote a greater integration of the teams. Communication becomes more effective, as it is aimed at everyone, and departments can exchange experiences and information with greater speed and efficiency. With internalization, it is easier to promote synergy between teams.
Disadvantages of the Internal Team
This is probably the worst disadvantage of having too much internal structure. The cost of certain services can be up to ten times higher, between an internal and external structure. Therefore, even when a company decides to invest in internalization, the outsourcing of facilities, such as cleaning, janitorial, gardening, among others, is essential.
Companies with large internal structures have more difficulties adapting to the market. This is because, instead of seeking help from service providers specialized in the subject, they need to invest all the time in training, qualification and specialization of separate activities, which does not always happen. Furthermore, dismantling an internal structure, when no longer needed, is more difficult than canceling a contract and going with another company.
Advantages of Outsourcing
Outsourcing is an increasingly common option among companies. Many organizations are dismantling their internal structures to become more flexible, betting on partnerships and outsourcing. In addition to reducing costs, this type of structure also makes it possible for the core activities of the business to be better performed, since the focus is totally directed. Next, check out the advantages and disadvantages of outsourcing.
The first advantage of outsourcing is the fact that companies find it easier to structure their needs and departments.
For example, a company that hires a more traditional marketing company may feel the need to invest in digital marketing. For this, it would be enough to close with the new company after the end of the contract, without the need to dismantle an entire internal structure for this.
Likewise, costs are greatly reduced, since, when choosing to hire an external team, there is no obligation, on the part of the organization, to follow the salary conditions of the Collective Agreements specific to the market segment in which the company operates. company is included. The difference in budget needed to raise an internal department and outsource it is often striking.
Hiring third parties ensures a better economic balance for the company, in addition to optimizing resources. For example, the reduction of the company’s labor liabilities is notable, since the amounts paid to the outsourced already include the costs of vacations, charges, terminations, etc. Adding up all the benefits, we can also conclude that cost predictability is greater and this contributes to the development of the company’s strategic planning!
No company can be a specialist in everything and, if it attempts this feat, it will certainly face a series of problems and, in the end, not achieve the desired objective.
Remember that competitiveness also affects service providers, so many of them are developing strategies to offer the best services at the lowest possible cost. Thus, it is possible to count on segmented services, destined exclusively for your line of business.
Disadvantages of Outsourcing
A common, and often unavoidable, problem is that third-party professionals and in-house professionals often face communication and integration issues. This is a factor to be taken into account when contracting external services, especially if they are very relevant to the core business activity. This contributes to distancing from external teams, which also leads into our next topic.
Less control of activities
Despite being able to demand results directly from the service provider, the truth is that the control of outsourced activities is much more limited. Therefore, it is not feasible to outsource core activities, or those necessary for their achievement, since monitoring is essential to achieve better results.
Outsourcing vs In-house teams: which is the best option?
Outsourcing is an inevitable option in a more competitive scenario, especially when we refer to the outsourcing of facilities, such as security, concierge and cleaning; or others, such as marketing and IT – if the company’s core activity is not related to the two sectors.
It is necessary for the manager to carry out a strategic plan to define the company’s priorities and, in this way, assemble an internal organizational chart that is essential to increase productivity, in the most optimized way possible. Therefore, carefully evaluate both options and find the most appropriate model for your organization.