According to OLIVER SCHMID, International Association of Outsourcing Professional (IAOP) member, OUTSOURCING refers to ‘ give a task or a process that is used to be performed internally to a third party service provider for fulfillment. ‘ In other words we can say that Outsourcing refers to contracting out less important activities to someone who has specialized in it so as to avail their expertise experience . Moreover , it also allows managers to concentrate on core activities.
A question arises here that why do we need to outsource ?? why the companies need to spend some extra money in outsourcing these tasks??
Here is the answer to this query. Following are the reasons which leads to outsourcing:-
* Focusing on core work- Outsourcing provides an opportunity to the organisation in which all the not so important tasks are given away so that the main focus is on the core work. As a result the organisation will work better and efficiently.
* Working towards excellence- the organisation can excel in two ways by outsourcing . first of all,the organisation can excel in core activities by focusing only on them . And secondly the organisation can also excel in non core activities by outsourcing them to those organisations who have excelled in it.
* Saving the cost- Outsourcing not only benefits the organisation by having expertized services but also helps the organisation by reducing the cost of work. As the organisations(to which the activities are outsourced ) are working on a large scale and they deliver the same services to a number of organisations ie the benefit of economies on large scale.
These factors make outsourcing the most appropriate options for the organisations because it is a great help to the organisations working on large scale whereas it is not so beneficial for small scale industries as it may lead to an increase in their cost and there is a possibility that their cost will be more than their profits.
45 Comments. Leave new
Nice article!
ty Himanshi 🙂
nice work
ty Dhruv 🙂
Good work! well presented 🙂
ty Kirti 🙂
Crisp and clear.
Ty Anshu 🙂
nicely explained the concept 🙂
TY Abhishek 🙂
Well researched. Good work.
ty Shubhangi 🙂
nice!
ty Megha 🙂
Well written.
ty Ojasvi 🙂
great!
ty Aradhana 🙂
Nice article.
ty Aayushi 🙂
Well written☺
ty Tarandeep 🙂
Great work!!
ty Dipesh 🙂
Clear, cohesive and crisp!
ty Harshita 🙂
Well presented concept 🙂
ty Shikha 🙂
Informative article
ty Akanksha 🙂
well written
ty ELESHA 🙂
very well explained!!
TY Megha 🙂
Very well written!
ty Akansha 🙂
good one 🙂
ty Anirudh 🙂
Good work
ty Akanksha 🙂
it has become a norm nowadays, moreover it creates more employment and development opportunities along with giving the company as well as manager to focus on other core areas and produce up to the mark result
agree Sonu !
Nyc 🙂
Very well written great efforts
informative.