What is outsourcing

What is outsourcing? Outsourcing is a company's activity of engaging another organisation to do their business process or part of their business process.

Below are some examples of why outsourcing can be a good decision.

1. More often than not, companies that take on outsourcing projects and jobs already have the facilities and the manpower to do the business process on behalf of their client's companies. This means that the client do not need to buy the necessary facilities and hire the necessary staffs or personnels in order to get the job done. This translates to huge savings for the companies that engage the outsourcers.

2. By outsourcing some of the tasks, companies can focus their business on more important matters. This can ensure that efforts are effectively channeled to make the business more competitive. Instead of being a jack of all trade, companies should focus on their main core business and let some of the other side tasks be managed by experts of these areas.

3. Outsourcing is one way of getting highly-productive manpower in a cheaper rate. Why is that so? This is because the wages of skilled professionals in certain companies are lower than in other countries. This is due to the cost of living being lower in certain countries. This results in skills professionals from certain countries having a lower market rate salary.

4. By outsourcing certain functions and tasks, a company can be able to save a lot of office space. This is because facilities required for these tasks need not be housed within the office.