Skip to main content

What is Outsourcing?

Outsourcing referrs to a company that contracts with another company to provide services that might otherwise be performed by in-house employees. Many large companies now outsource jobs such as call center services, e-mail services, and payroll. These jobs are handled by separate companies that specialize in each service, and are often located overseas.

There are many reasons that companies outsource various jobs, but the most prominent advantage seems to be the fact that it often saves money. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers, and have fewer overhead expenses to worry about.

Outsourcing also allows companies to focus on other business issues while having the details taken care of by outside experts. This means that a large amount of resources and attention, that might fall on the shoulders of management professionals, can be used for more important, broader issues within the company. The specialized company that handles the outsourced work is often streamlined and often has world-class capabilities and access to new technology that a company couldn't afford to buy on their own. Plus, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries.

There are some disadvantages to outsourcing as well. One of these is that outsourcing often eliminates direct communication between a company and its clients. This prevents a company from building solid relationships with their customers, and often leads to dissatisfaction on one or both sides. There is also the danger of not being able to control some aspects of the company, as outsourcing may lead to delayed communications and project implementation. Any sensitive information is more vulnerable, and a company may become very dependent upon its outsource providers, which could lead to problems should the outsource provider back out on their contract suddenly.

While outsourcing may prove highly beneficial for many companies, it also has many drawbacks. It is important that each individual company accurately assess their needs to determine if outsourcing is a viable option.

source: wisegeek.com

Comments

Popular posts from this blog

What is Team Effectiveness?

Team effectiveness refers to the system of getting people in a company or institution to work together effectively. The idea behind team effectiveness is that a group of people working together can achieve much more than if the individuals of the team were working on their own. Team effectiveness is determined by a number of factors, such as: * The right mix of skills. Team effectiveness depends in part on bringing together people who have different skills that somehow complement each other. This can mean different technical abilities or communication skills. In fact, teaming up people who share the exact same characteristics is often a recipe for disaster. Team effectiveness depends on people taking on different roles in a group setting. If there is no agreement on who does what in the group, it is unlikely that the team will prosper. * The right motivation. Team effectiveness is directly linked to the interest that the group has on the project. If the job is too easy or ...

How to Study GMAT

When you are going to prepare for GMAT Exam you have many questions in your mind as what is this test all about? Why is it necessary to take this test? What are the contents of this test? How to prepare this test? And what are the strategies that can be proved useful during exam? This article is aimed at answering all your questions and it will be quite useful for you while preparing for the GMAT exam. Prepare GMAT using GMATPass.com (http://www.gmatpass.com) As far as the question of what is this test for and why it is important? is concerned, the answer to these questions is very simple. The Graduate Management Admission Test (GMAT) is a standardized test that's used to predict a college graduate's likelihood of succeeding in graduate schools of business. While not all business schools require candidates to take the GMAT test, the vast majority do. Scores range between 200 and 800 on the GMAT test, and everything else being equal, a higher score naturally improves your chance...

How to Motivate Yourself to Write

Let’s see… Your deadline for that essay is tomorrow but you still can’t get a word out of you. You’re suffering from a writing deficiency beginner writers have. Some people think writing is easy and trivial. But that’s cheap talk. An articulate person can have all year to write a bestseller and still end up with a blank page. If you want to be a writer, you have to work for it. Reading is always a good way to get inspired. But for now, consider these pointers: Eliminate distractions. Sometimes, it’s not really an issue of motivation but more of a distraction issue. If you feel stymied by all of the things going on around you, then go find a good spot. If you’re the word processor type of writer, then why not use a distraction free word processor like DarkRoom . Write what you know. It’s hard enough to put into words your thoughts without having to come up with a compelling piece that’s totally alien to you. Choose your mentor. Be careful who you look up to. Often times, ...