What is outsourcing?
Process of contracting a business function to a service provider is commonly known as outsourcing, which is a strategic management business tool. The organizations need to concentrate more on core business and hence all the other tasks are outsourced. These services are offered by the back office solution providers, and they make the work easier for the oganizations.
Two common types of outsourcing:
- Information Technology (IT) Outsourcing
- Business Process Outsourcing (BPO)
BPO helps in providing solutions for back office related process, accounting solution, HR management & benefits, payroll management, finance management and activities.
Benefits of outsourcing:
- Minimize the operating cost
- Capable of working world class
- Resources are redirected towards activities in order to get great returns
- Risk sharing
- Information and images are accessed immediately
- Easy scaleability
- High accuracy
- Experienced professionals
- Efficiency and feasibility
- Cut cost services
- Increase production
- Remove backlogs