What is Outsourcing?
Today Outsourcing has become a very common thing in our economy, which makes it essential for us to have complete knowledge about it. But in order to completely know this topic, we have to discuss every single detail of it. So, in this article we will discuss about the outsourcing definition along with its usability and examples.
The economy we are living in today was far more different 50 years ago, but things have changed a lot since then. Now we are living in a very globalized market where every industry is connected with each other in some way. And this has helped a lot to make outsourcing possible. Outsourcing generally means hiring a party to do a work which was previously done in-house by the company’s workers.
This practice started gaining popularity since 1989 and now it has become a very important part of our financial system. The outsourcing is mainly used to cut the cost of production and to increase productivity. The global outsourcing market has increased significantly in the past 20 years and according to a study the current global outsourcing markets stands at more than 100 billion dollars. However, there are also many objections regarding this practice. For example, if the party who has taken the job of a company is not reliable then the whole operation could be a disaster. But for most of the time, the Outsourcing is a pretty amazing thing. It helps companies to utilize their money in the most productive way and the other party gets benefited by the gifted work, plus it also creates businesses for the under developing countries.
One of the most important outsourcing examples would be the customer servicing sector. As of now most of the American companies outsource its customer servicing operations to India because the Indian companies charge much less than the American companies.
By Outsourcing a mobile manufacturing company can buy internal components for its devices from other companies to save costs. And a cybersecurity provider could hire another company to connect with its clients.
So, these are a few outsourcing examples which have become a very ordinary thing in the financial market. And in my opinion outsourcing has its own importance in our system and it only improves the quality of the services we want.
I think this discussion is enough to provide you with complete knowledge of “what is outsourcing” and how it works. And by understanding this outsourcing definition you can surely grasp the idea about our current economic system.