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What Is Outsourcing And How Does It Work?

What is Outsourcing
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Outsourcing is a process in which a company outsource its some business tasks and operations to a third party that can be hired to perform such tasks. The third party manages all the employees and work platform to complete the tasks at the proper location that is decided by hiring company. It totally depends that what types of activities and tasks, they want to outsource. Because various types of tasks and operations can be performed by outsourcing in current time.

Most of the companies hires third party for outsourcing IT related services that covers programming management, application and software development, coding-decoding, anytime technical support services. Customer care services also can be performed by outsourcing companies because it needs a particular operating system that can handle your all types of customer grievances. Some companies outsource its manufacturing process to other companies or organizations so that they can focus only on marketing activities. If you are not able to perform book keeping or don’t have time to do that, Outsourcing can be your right choice for keeping your accounts in an appropriate manner. Sometimes, Outsourcing is seen like a contract business. In this procedure, a company creates a contract for completion of provided tasks and operations. With the help of outsourcing, the company can put its all-effective efforts on significant major tasks. This will save the time and cost that can be suffered due to improper classification.

Types Of Outsourcing

Generally, it is all up to the organization or company that what type of outsourcing they require to have but we are pointing out some of the major outsourcing aspects.

Engineering Process Outsourcing

A company that can’t perform the engineering tasks or doesn’t prioritize such tasks and operations, can hire a third party to complete the tasks that are related to engineering. Some bigger companies hire third parties to perform major engineering operations. 

IT related Outsourcing

Some companies outsource its all IT related operations to other companies that have expertise in technology. There are various tasks and activities that are related to IT services such as, application development and management, Software development, technical support and services. Some companies hire service providers that can solve its customer’s technical issues.  

Human Resources Outsourcing

Outsourcing in arranging human resources is a vital task because, sometime the leading company can’t hire and manage the human resources as they are not able to recruit the vacancies and fill the vacant posts. To get rid of such obstacles, most of the large companies outsource its human resources to other party. The outsourcing company handles company’s recruitment, payroll, deployment and etc.

Legal Process Outsourcing

All the companies that require legal assistance at higher level, must go for this type of outsourcing. Because all the companies are not able to have lawyers in their staff and they arrange the other party who can perform all the legal activities on their behalf. 

Benefits of Outsourcing

Outsourcing features various significant advantages that can help manage all the business activities and grow your business. Let’s see some those benefits of Outsourcing.

Reduce Cost

This is one of the major reasons for that outsourcing is used by a company. In Outsourcing, company doesn’t require to have lots of employees and equipment because they outsource the work to other party that completes the tasks with their own resources. Sometime is better to outsource the tasks and operations to outside employees because they can perform those tasks cheaper than company’s own employees. A company can save the expenses that is related to purchasing machinery and tools, that can be used in manufacturing or other activities.

Enhance Quality

If a company outsources its less-important tasks to a third party, then that company can easily focus on more competitive activities. The management team of a company has various significant works that might be long term investments or higher profitable projects, so they would not like to give their precious time and valuable efforts. With the help of outsourcing, they are able to focus on the objectives of company and this process increase the productivity and quality of that particular company.


This is another splendid advantage of Outsourcing. If a company is not happy or satisfied with the output of their third party, they can immediately change that party. It is not possible for a company to change or retrench its own employees. We can add or subtract the number of employees as per our demand during a project. That is why, outsourcing is the most flexible way for a company.

Experienced Team

If you want to get the work done by special or experienced employees, then it is quite convenient in Outsourcing because you can give your tasks to the employees who are veteran in it. A company has various types of employees like skilled, unskilled and semi-skilled but if you want to complete the project by skilled employees then outsourcing will be your right choice. You can call all the experienced employees who have expertise in that particular work.

Better Customer Services

A company who is not able to set up a separate customer support system, it can go for Outsourcing. The company can hire a third party who can perform all the relevant activities. When a company hires other party to communicate with its customer then they can provide better support services because company hires a team that has specialization in handling customer grievances.

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