Is Outsourcing a Strategic Management Option – Find Out How?
Outsourcing in literal sense means sourcing from offshore business houses. It refers to sub- contracting of non core aspects of the business to a third party vendor. It can also be said that, outsourcing is a sort of arrangement in which one company hires another company which can take charge of their in-house services. Outsourcing can range from large contracts like managing the IT support services of the client, to the general trend of hiring contractors and office workers on individual basis. Generally, the non-core aspects of the business are outsourced. Some common examples of outsourcing include IT support services, telemarketing services, manufacturing components, order processing, phone answering services and customer support services. Types of outsourcing: Outsourcing can be divided into two broad categories. These are Business process outsourcing( BPO) and Knowledge Process Outsourcing (KPO) Business process outsourcing (BPO): This term was coined in the year 1995 and was acc
