What is Outsourcing?
What
is outsourcing? outsourcing is the process of hiring another company to handle
business activities for you.
outsourcing
is distinct from information technology (IT)
outsourcing , which focuses on hiring a
third-party company or service provider to do IT-related activities, such as
application management and application development, data center operations, or
testing and quality assurance.
In
the early days, outsourcing usually consisted of outsourcing processes such as
payroll. Then it grew to include employee benefits management. Now it
encompasses a number of functions that are considered "non-core" to
the primary business strategy.
Now
it is common for organizations to outsource financial and administration
(F&A) processes, human resources (HR) functions, call center and customer
service activities and accounting and payroll.
These
outsourcing deals frequently involve multi-year contracts that can run into
hundreds of millions of dollars. Often, the people performing the work
internally for the client firm are transferred and become employees for the
service provider. Dominant outsourcing service providers in the BPO fields
(some of which also dominate the IT outsourcing business) include US
Many
of these outsourcing efforts involve offshoring
hiring a company based in another country -- to do the work. India
Frequently,
outsourcing is also referred to as ITES -- information technology-enabled
services. Since most business processes include some form of automation, IT
"enables" these services to be performed.
An
offshoot of outsourcing is KPO -- knowledge process outsourcing. Considered by some to be a subset of outsourcing, KPO
includes those activities that require greater skill, knowledge, education and
expertise to handle. For example, whereas an insurance company might outsource
data entry of its claims forms as part of a BPO initiative, it may also choose
to use a KPO service provider to evaluate new insurance applications based on a
set of criteria or business rules; this work would require the efforts of a
more knowledgeable set of workers than the data entry would. The current
definition of KPO encompasses R&D, product development and legal
e-discovery, as well as a number of other business functions.
Also
coming into use is the term BTO -- business transformation outsourcing. This
refers to the idea of having service providers contribute to the effort of
transforming a business into a leaner, more dynamic, agile and flexible
operation.see more
Some sites for outsourcing.
1.Odesk
2.Freelancer.
3.Elance
4.Guru
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