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Critical factors
Some directors try to keep the largest possible number
of tasks within a company. This often has the effect of
putting the financial structure of the company under strain,
which is weighed down by the amount of investment in vital
equipment and the number of employees. If the profit margins
achieved by sub-contracting certain non-strategic tasks
are close to those obtained by internal product, it is
in the company's interest to sub-contract.
In addition, if we remember that the aim is productivity,
which is one of the criteria which enable us to weigh
up the choice of sub-contractor/agent/ internal production,
it is not just the accessory activities which have to
be externalised, but we should consider the whole question
of the company's costs and, whilst respecting the conditions
laid out in the passage on sub-contracting, externalise
whatever can help the company's costs to be reduced.
Who should decide when to use agents and sub-contracting
?
Project or department managers are those who have to
take these decisions, as they are the only ones with an
overall vision of their job (financial aspects, marketing,
operational and human factors) and able to make relevant
choices with regard to trinomial production.
They must possess three assets :
- job competence, which allows them to understand the
different tasks in detail, the costs, and the standard
of quality expected by the client ;
- computer literacy : they must be constantly in touch
with technological developments, in order to increase
productivity and quality ;
- managerial qualities, in the context of a network of
co-operative work : they must be able to cope with distance
management and co-ordinate employees, sub-contractors
and agents.
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