The larger a business gets, the more complicated its network becomes. It is important for all functional areas to be well integrated if a business is to achieve success. Large businesses often work with third party companies that help reduce the workload. Here are some examples of how a business uses a third party agency to carry out its tasks:
1. Recruitment and Selection Process
Businesses often hand over the recruitment process to a third party known as “headhunters”. These job recruiters look for candidates to fulfill the company’s requirements. They act as a bridge between the employer and employee.
Companies often outsource their marketing to a third party agency. Effective promotion is an element of the marketing mix and is the key to business success. Promotional product companies help in advertising in various ways. Some companies create merchandise that is used for promotion such as keychains, pencils, drinkware. On the other hand, some companies promote the brand directly via social media or sponsorship.
Why would a business use a third party to carry out it tasks?
Outsourcing helps reduce the burden on the managers of the business. It allows them to be able to devote more time to serious business issues such as survival and growth. Business environment is dynamic and there is always a threat from outside influences such as new competitors or changing economic conditions.
So to ensure that a business does not fail in the long run, it is necessary to outsource some tasks.