Outsourcing is a business practice where a third party is hired to perform services or job functions, either on a contract or ongoing basis. Outsourcing can involve a wide range of operations, such as disaster recovery, network services, and the entire IT function. There are two types of outsourcing: local and offshore. Offshore outsourcing involves outsourcing to a company or agency in another country, often overseas, which can provide access to global talent and lower costs.
Outsourcing can bring many benefits, but there are also risks and challenges to consider when negotiating and managing outsourcing relationships. The failure rate of outsourcing relationships can range from 40% to 70%.
Here are some examples of services that can be outsourced:
- Outsourced accounting services can help with learning and following compliance standards, identifying areas for improvement, and measuring cash flows.
- Developers and programmers can maintain web apps and websites so that they will not have any downtime.
- Most outsourced call centers handle inbound phone calls, often leveraging a low-wage workforce that allows them to reduce expenses.
- Outsourcing the process of cold calling gives businesses peace of mind, better expertise, and cost-savings.
- Outsourcing companies can perform various tasks such as data entry, order processing, form processing, a compilation of mailing lists, and processing of different organizational and business information.
