Outsourcing is the business practice of hiring a party outside a company to perform

services and create goods that traditionally were performed in-house by the
company's own employees and staff. Outsourcing is a practice usually undertaken
by companies as a cost-cutting measure

Description
Outsourcing is an agreement in which one company hires another company to be responsible
for a planned or existing activity that is or could be done internally, and sometimes involves
transferring employees and assets from one firm to another

Some common outsourcing activities include: human resource management,

facilities management, supply chain management, accounting, customer support
and service, marketing, computer aided design, research, design, content writing,
engineering, diagnostic services, and legal documentation.

Outsourcing is a strategy by which an organization contracts out major functions to

specialized and efficient service providers who ultimately become valued business
partners. In some cases, outsourcing involves the transfer of employees from the
company to the outsourcing company.

In the United States, outsourcing is considered a bad word. ... Companies

sometimes need to cut costs in order to stay in business, especially in a
recessionary period, and outsourcing manufacturing and non-core business
activities has allowed many companies to do that.

Outsourcing is a business practice in which a company hires a third-party to

perform tasks, handle operations or provide services for the company. ... They
can outsource other types of work as well, including manufacturing processes,
human resources tasks and financial functions such as bookkeeping and payroll
processing.

Outsourcing is a business practice in which a company hires another company or

an individual to perform tasks, handle operations or provide services that are either
usually executed or had previously been done by the company's own employees. ...
They frequently outsource customer service and call service functions.

 Professional Outsourcing. Professional Outsourcing includes accounting,

legal, purchasing, information technology (IT), IT or administrative support and other
specialized services. ...
 IT Outsourcing. ...
 Multisourcing. ...
 Manufacturer Outsourcing. ...
 Process-Specific Outsourcing. ...
 BPO. ...
 Project Outsourcing. ...
 Offshore Outsourcing.

Outsourcing is a common practice of contracting out business functions and

processes to third-party providers. The benefits of outsourcing can be substantial -
from cost savings and efficiency gains to greater competitive advantage.

Companies outsource primarily to cut costs. But today, it is not only about cutting

cost but also about reaping the benefits of strategic outsourcing such as accessing
skilled expertise, reducing overhead, flexible staffing, and increasing efficiency,
reducing turnaround time and eventually generating more profit.

More formally, risks associated with outsourcing typically fall into four general

categories: loss of control, loss of innovation, loss of organizational trust, and higher-
than-expected transaction costs.

One of the biggest disadvantages of outsourcing is the risk of losing sensitive

data and the loss of confidentiality. It is important, therefore, to have checks in place
to avoid data loss. ... Since the outsourcing provider may work with other
customers, they might not give 100% time and attention to a single company.

Business process outsourcing (BPO) is the practice of contracting a specific

work process or processes to an external service provider. The services can
include payroll, accounting, telemarketing, data recording, social media marketing,
customer support, and more.

Why is outsourcing a good business strategy? It improves efficiency, cuts costs,

speeds up product development, and allows companies to focus on their “ core
competencies”. ... It enables an organization to achieve business objectives, add
value, tap into a resource base and mitigate risk.Jan 7, 2015

BPO is often divided into two main types of services: back office and front office.
Back-office services include internal business processes, such as billing or
purchasing. Front-office services pertain to the contracting company's customers,
such as marketing and tech support.

The Pros and Cons of Outsourcing

 Outsourcing vs. ...

 Pro 1: Outsourcing can increase company profits. ...
 Pro 2: Outsourcing can increase economic efficiency. ...
 Pro 3: Outsourcing can distribute jobs from developed countries to developing
countries. ...
 Pro 4: Outsourcing can strengthen international ties. ...
 Con 1: U.S. job loss. ...
 Con 2: Lack of transparency.

Offshoring also has its disadvantages, with the most prominent one being

exposing the business to the risk of a data breach or a cyber attack. ... Some of the
benefits to offshoring and outsourcing work processes include the following:
Lower costs. Focus on business development.
Following are eight helpful suggestions.

1. Help the outsourced party (or parties) understand your business and goals. ...
2. Make sure everyone's working from the same playbook. ...
3. Be mindful, and respectful, of everyone's time zone – and use them to your
advantage. ...
4. Make sure everyone's working off the same files.

Business process outsourcing (BPO) is the practice of contracting a specific work

process or processes to an external service provider. ... BPO is often divided into
two main types of services: back office and front office. Back-office services include
internal business processes, such as billing or purchasing.

Outsourcing occurs when a company contracts a specific process out to a third

party, finding someone who specializes in whatever needs to be
done. Offshoring happens when businesses send in-house jobs overseas. Both
may save a company money, but only offshoring specifically means sending jobs
out of the country.

KPO is different from business process outsourcing (BPO), which is the outsourcing
of work to a third party to save money. Although KPO is a subset
of BPO, KPO involves more specialized, analytical, and knowledge-based work.

Vertical BPO: A vertical BPO focuses on proving various functional services in a

limited number of industry domains. Healthcare, financial services, manufacturing
and retail are examples of vertical BPO domains. BPO horizontals are function-
specific and could spread across different industry domains.