A Brief Description: What is outsourcing?
Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business.
Outsourcing refers 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.
The theory behind outsourcing is enabling the organization to focus on its core business or businesses while hiring “experts” to manage and operate non-core functions thus creating cost savings, efficiency, and flexibility. The most common areas for outsourcing are human resources (benefits, recruiting, etc.), IT, maintenance, and call center. Depending on the business’ size and complexity, other areas are supply chain (procurement, distribution, logistics, etc.) and even manufacturing.
