What is Outsourcing?
Contracting out non-core and regular activities in which a company lacks competence to other agencies in order to benefit from their experience, knowledge, and efficiency is called Outsourcing.
It is a business practice, known as contracting out or business process outsourcing in which one company hires another company or an individual, such as a service provider or vendor, or a third party to perform tasks, handle operations, or provide services that are normally or previously performed by the company’s own employees.
This service provider/vendor arranges for its own personnel or computer systems to do and focus on a certain activity or service, which it can do better, quicker, and cheaper than the hiring firm, either on-site at the hiring company’s own facilities or some external remote locations. Many types of jobs, including manufacturing operations, human resource activities, and financial functions, like accounting and payroll processing, can be outsourced. Companies can outsource whole departments, such as their IT department, or even parts of a department.
Table of Content
- Features of Outsourcing
- Scope of Outsourcing
- Types of Outsourcing Service Providers
- Concerns over Outsourcing
- Business Process Outsourcing(BPO)
- Knowledge Process Outsourcing