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What is Outsourcing?

 

The word “outsource” in Turkish is translated as “dışarıdan temin etmek” or “dış kaynak kullanımı.” However, since the latter has become part of professional jargon, “dış kaynak kullanımı” is more commonly used.

Outsourcing is a management strategy that enables companies to carry out activities that are not related to their core competencies through businesses specialized in those fields, in accordance with the required quality standards; allowing them to focus on their main activities that give them a competitive advantage (The Outsourcing Institute, 1997).

Every company has many different departments. For example, a company in the food industry producing delicious biscuits and candies does something very different than a technology company producing computer and phone processors. However, these different sector companies still share many common departments—such as logistics, storage, accounting, and human resources. If our biscuit-producing company spends invaluable time and energy on payroll checks, its competitor may already have discovered and launched new flavors. The same logic applies to our technology company. Regardless of your sector, outsourcing promises to take on the tasks that slow you down and clear the way for you. This way, you can devote all your concentration to your core business.

The Right Outsourcing Experience

The way to employ staff aligned with a company’s vision and mission is through Human Resources. This makes HR one of the fundamental building blocks of a company. Perhaps the most important criterion for workplace harmony is payroll confidentiality, which is also safeguarded by HR. Therefore, it is crucial to carefully analyze to whom the company’s privacy will be entrusted.

As we understand from the quotation from The Outsourcing Institute, outsourcing is of great importance for companies’ growth strategies. With outsourcing, a specific department or area is left to the professionals, and the risks in that area are eliminated. However, the most critical point is to work with a strong, reliable outsourcing firm (or brand) with a solid background.

How Does Outsourcing Create Added Value?

There’s no need to dive into global markets to talk about competition. Even a small grocery store competes with the one around the corner. Outsourcing is considered one of the greatest advantages for companies facing competition because it allows existing internal resources to be used more effectively in other areas.

By outsourcing payroll processes to Datassist Payroll Service and benefiting from flawless service, HR departments can stop struggling to finish payrolls and instead organize activities that boost employee engagement. High employee engagement is as important as profitability for companies today. In fact, one of the main drivers of success in competition is now: happy employees!

In addition, companies that outsource gain the excellent added value of enjoying high quality at lower costs while also saving time.

How is Risk Managed in Outsourcing?

Companies that work with Datassist Payroll Service don’t face such concerns. Because there is no risk—it is entirely assumed by Datassist Payroll Service. This is a key criterion for the right outsourcing experience.

What HR Processes Can Be Outsourced?

Many Human Resources processes can be outsourced:

  • Payroll
  • Employment
  • Payroll SaaS
  • Payroll Compliance Audit
  • Incentive Consulting
  • Social Security Consulting
  • Recruitment
  • Work Permit Consulting

A Brief History of Outsourcing

Although the term “to outsource” entered the Oxford English Dictionary in 1979, outsourcing only started to spread in the early 1990s and gained significant momentum in the early 2000s—momentum that continues to grow today. In Turkey, this dates back to 1999 with the establishment of Datassist Payroll Service, particularly in HR and payroll processes.

Outsourcing in the Wild West

Lucky Luke—known as “Red Kit” in Turkey—is a character most people know. In the second half of the 1800s, the notorious Dalton Brothers gang constantly escaped prison, committed crimes, and caused unrest. Neither national nor local American police could capture them. So, the police outsourced the job of catching the Daltons to the charismatic cowboy Lucky Luke. Being an expert, Lucky Luke always managed to outwit the Daltons and bring them to justice.

Outsourcing in the Conquest of Istanbul

A Hungarian engineer, Urban, played a significant role in the conquest of Istanbul, a turning point in European and Middle Eastern history. To destroy the thick walls of Istanbul, Fatih Sultan Mehmet needed the strongest cannons. Legend has it that Fatih had Urban rescued through a tunnel from Byzantine dungeons and commissioned him to cast enormous cannons, unprecedented for the time. Ultimately, Fatih’s decision to outsource to the right expert opened the gates of conquest.

DBS