Outsourcing is an allocation of specific business processes to a specialist external service provider. Most of the times an organization cannot handle all aspects of a business process internally. Additionally some processes are temporary and the organization does not intend to hire in-house professionals to perform the tasks.
Once the task is outsourced to the service provider, he will take the responsibility of carrying out the tasks and maintaining the organization’s assets.
However prior to outsourcing any component of your business to a third-party vendor, it is essential to understand the advantages and disadvantages of outsourcing. Although outsourcing presents a variety of benefits to your organization, it could also pose difficulties if not outsourced to the right service provider.
The most commonly outsourced streams of business include:
- IT outsourcing
- Legal outsourcing
- Content Development
- Web Design and Maintenance
- Technical/Customer Support
Why do organizations outsource their business process?
The key factors which have led to a growing trend of outsourcing are
- Lack of expert-labor in some portions of the business process
- Availability of cheaper labor, whilst not comprising on the quality of output
- Ability and feasibility to concentrate on the other crucial business process
These factors have specifically contributed to most of the outsourced partners across different locations in the world. Expertise in communication capabilities, technical expertise and favorable financial packages are the most important advantages of outsourcing to India.