What is outsourcing?
Benefits of outsourcing
What is outsourcing?
Outsourcing is the contracting
out of a company's non-core, non-revenue-producing activities to specialists.
It differs from contracting, in that, outsourcing is a strategic management tool
that involves the restructuring of an organization around what it does best -
its core competencies.
Two common types of outsourcing:
Information
Technology (IT) Outsourcing
Business Process Outsourcing (BPO)
BPO includes Outsourcing related to Back Office, Accounting, HR, Benefits,
Payroll, and Finance functions and activities.
Benefits of outsourcing: -
Reduce & Control Operating cost
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Access to world class capabilities
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Redirect Resources towards activities which have the greater return
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Share risks
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Immediate Access to information and images
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Scaleable
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Accuracy
- Expert
professional staff
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Efficiency
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Cost effectiveness
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Improve production and eliminate backlogs
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