Outsourcing Processes

What is Outsourcing?

Outsourcing may simply be defined as an agreement or contract with a third party, to provide service to the concerned firm. This third party service provider may work remotely from a different geographical location or it may work at the same place. Outsourcing is often referred to as off shoring which is the same as outsourcing.
The concept of outsourcing came into demand with the advent of many software companies and with the rise of Information technology. Since the companies needed a way to handle a huge number of customer service departments, the concept of outsourcing evolved.

Types of Outsourcing Processes
There are different types of outsourcing depending upon the need of the firms. Some of them are – Business Proces Outsourcing (BPO), Account Process Outsourcing, Recruitment Process Outsourcing (RPO), Knowledge Process Outsourcing (KPO) etc. These different types of outsourcing basically helps in providing services to the customers by handling tasks like maintenance, payroll, research management etc.

Different methods of Outsourcing Processes

Companies have adopted different method of outsourcing to meet the demands of the customers. Usually the companies hire skilled workers at a low costs and divide the whole work into different segments, so that they can work with ease. One important method of outsourcing which the companies have adopted is call centers. At call centers a number of skilled people are employed to answer the query of their customers. The employed people are paid salaries which are less compared to what the firm would have to pay for in their own countries.
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Benefits of Outsourcing Processes

There are a number of advantages of Outsourcing; some of them are listed below:

1. The greatest benefit is that outsourcing helps the organization to gain a lot of profit, since the operating cost is reduced.

2. The service provided is not of low quality, as the service is being provided by experienced third party service providers.

3. Outsourcing also helps the organization to work at a number of projects at the same time. The firm does not have to concentrate on one particular project at a time, since outsourcing helps in reducing some of the burden from the company.

4. It is not only the firm who profits from outsourcing. Even the third party service providers gain a lot of profit. Usually these service providers are from countries like India, China, and Malaysia etc and with outsourcing the need of job in these countries are fulfilled and the salary and incentives are satisfactory.

5. Another important benefit is that outsourcing provides flexibility to the company. It means that the company can easily adapt to any situation or demands of the market and the customers.

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