What is Outsourcing


 

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Definition

          Outsourcing refers to a company that contracts with another company to provide services that might otherwise be performed by in-house employees. Many large companies now outsource jobs such as call center services, restaurant supplies, and restaurant food supply. These jobs are handled by separate companies that specialize in each service, and are often located overseas.

Reasons for outsourcing

            There are many reasons that companies outsource various jobs, but the most prominent advantage seems to be the fact that it often saves money by reducing manning. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers, and have fewer overhead expenses to worry about.

             Outsourcing also allows restaurants to focus on other business issues while having the details taken care of by outside experts. This means that a large amount of resources and attention, that might fall on the shoulders of restaurant management professionals, can be used for more important, restaurant customer service issues within the company. The specialized company that handles the outsourced work is often streamlined and often has world-class capabilities and access to new technology that a company couldn't afford to buy on their own. Plus, if a company is looking to expand your restaurant, outsourcing is a cost-effective way to start building foundations.