Benefits of Extensive In-House Capabilities in a Company
In-house capabilities are abilities to use your own employees to carry out various activities in a business instead of sourcing for external persons. These business activities may include sales, marketing, financial budgeting, accounting, customer service and hiring of employees. In order to avoid outsourcing and have in-house capabilities, a company must possess highly knowledgeable and skilled staff. 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. Every business has important information or data which should not be known by the external persons. This information consists of how the business carries its activities, its revenue, salaries of employees, bank account details and its vision. Disclosing this sensitive information may bring about hacking, influencing of employees and other negative impacts. 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.
The second benefit of extensive in-house capabilities is the reduced business expenditure. Amount spent in paying salaries reduces significantly when a business is able to use its staff to carry out all activities. External people are paid dearly since they work in contracts. Outsourced people also use their own equipment in carrying out the 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. A company or institution will have better management when using its own management team instead of outsourcing managing staff. 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.
A business with extensive in-house capabilities will possess skilled and experienced personnel. A company that hires and employs its staff by itself tends to have more qualified and experienced staff. A company that has external persons as its employees is characterized by incapable and unskilled employees. This will affect the company negatively because of the poor services it will be providing and low-quality goods produced.
In conclusion, a company will enjoy many benefits when it has extensive in-house capabilities. Functional and financial benefits are the main classification of benefits of in-house capabilities. A company should ensure it does not do outsourcing at all.