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What is outsourcing?

Outsourcing is a process whereby a company is unable to complete it’s work in-house, so they hire external consultants or companies to complete this work for them.

Why does outsourcing happen?

Outsourcing happens when a company doesn’t have all the resources to complete particular jobs, tasks or projects and hires outside companies or consultants.

Where we outsource to?

Many people in the US believe that most of the work now days is outsourced to India. many people forget about china and the many other countries that provide low cost labor to manufacture the goods.

What are the categories of outsourcing?

There are other varieties of outsourcing as well, as listed below.

  • Business process outsourcing(BPO)

BPO’s typically are focused on human resource and or labor intensive operations. this can also be done domestically or internationally. Many call centers and data entry warehouses fall under this category of outsourcing.

  • Knowledge processing outsourcing

KPO’s are formed when a company hires externally to complete “thought intensive “tasks or projects such as research or analytics.

  • It outsourcing

The most familiar type of outsourcing happens when a company hires and external vendor to manage and maintain their electronics including computers, phones and the company network in general.

       

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