Outsourcing - The Right Sourcing

Posted by Abdullah Mahmood on 3:06 AM with 2 comments

Outsourcing as the Right Sourcing

Today the world has turned into a global village as it shares its resources with different parts of the world. People have tried to gain maximum profits with maximum trade as not everyone can specialize in everything. Many countries have either naturally or through working hard developed some valuable resources. For the Brazilian civilians that resource would be sugarcane through which they produce massive energy and use it as fuel to drive their cars.

Today such resources have caught the eyes of many businessman and they have used these resources with great expertise. They have therefore come up with the idea of outsourcing their services and even part of their functions to other which would not only save time and money for them but also help in providing bread and butter for others.

Outsourcing refers to a process in which a company can contract with another company to provide goods or services that might otherwise be provided by some in-house wok staff. Today, many large companies outsource jobs which would require services including call center services, e-mail services, and payroll systems. The specified job will be completed by another company which would have a lower cost and higher efficiency and usually be located overseas in another country. And as the company is located at a remote area it is referred to as offshoring.

There are a variety of reasons that companies outsource so many jobs, but the most prominent advantages seems to be monetary benefits, time and even efficiency in some particular field. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers, and have fewer overhead expenses to worry about.

There are both advantages and disadvantages to the Outsourcing system. However the advantages outweigh the disadvantages in various ways which is why outsourcing is still highly considered by most companies. I will be briefing you about the advantages and drawbacks in later days.