Benefits of Extensive In-House Capabilities in a Company
In-house capabilities stand for quality of a business using its own staff to do all the various activities involved. The crucial activities involved in a business are management, accounting, customer support, budgeting and hiring of workers. A company should have highly skilled and qualified personnel so as to avoid outsourcing and have the extensive in-house capabilities. Outsourcing is the opposite of in-house capabilities. In outsourcing, a company finds external people to help in carrying out of activities. Below are advantages of extensive in-house capabilities in a business ;
Privacy and keeping of sensitive information is the first advantage of extensive in-house capabilities. In a business environment, there is information on activities involved which should not be made public. Sensitive business information which should be kept private include bank account information, amount of salaries of employees, the vision and profits of the business. Exposing of this information may lead to hacking, bad influencing of employees by external persons and other threats to the business activities. External peoples who are outsourced are the ones who mostly disclose the weaknesses of the business. The weaknesses are then used in attacking the business.
Cutting down on expenditure and costs is the next importance of extensive in-house capabilities. When a company uses its own employees to do all the activities, salaries and other expenses are reduced at a higher percentage. External people are paid dearly since they work in contracts. External employees prefer using their own apparatus to do business activities. These apparatus require power, maintenance and repair. The cost of doing this is bore by the business.
Good managerial control is another benefit of extensive in-house capabilities. When a business is controlled by its employees, it is well managed compared to when it outsources people to manage it. Outsourced managers are not permanently employed and may, therefore, they may mishandle the property and funds of a business. Non-outsourced employees know more about the business and have the relevant knowledge and skills. External persons know little about a company and will cause mismanagement if they are assigned the tasks of managers.
The fourth advantage of extensive in-house capabilities is qualified and experienced staff. A company that performs hiring of employees by itself mostly is characterized by learned and smart staff. A company that has external persons as its employees is characterized by incapable and unskilled employees. The profits realized by the business will go down significantly since the business will be dealing with poor goods and services.
Finally, extensive in-house capabilities have more advantages than outsourcing. The benefits of extensive in-house capabilities can be grouped as either functional or financial. A company should ensure it does not do outsourcing at all.
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