Outsourcing Companies .pdf
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Outsourcing is the transferring of a business process to a third party vendor. The
service provider will take over the responsibility of day to day function and
continuance of the assigned process.
There are several varied kinds of
outsource some degree of functions,
while others outsource complete
operations. Let's take Microsoft for
example; their total manufacturing
process is outsourced. Obviously, fees
are part of outsourcing depending on
the services necessary, and in cases like Microsoft, the contract can cost millions
and billions of dollars, and it becomes frequent for the client's employees to be
moved to the supplier company. Companies such as IBM, HP, EDS and Accenture
are some of the foremost outsourcing companies offering their services.
Outsourced entire operations fall into two (2) categories: Business Process
Outsourcing (BPO) and Information Technology Outsourcing (ITO).
The former is further sub-divided into call centre outsourcing (CCO), human
resource outsourcing (HRO), finance and accounting (FAO) outsourcing, and
claims processing outsourcing (CPO).
1.Information Technology Outsourcing (ITO)
a.Call Centre Outsourcing (CCO)
b.Human Resource Outsourcing (HRO)
c.Finance and Accounting Outsourcing (FAO)
d.Claims Processing Outsourcing (CPO)
2.Information Technology Outsourcing (ITO)
Basically, every business process can be transferred over to outsourcing
companies. The most widespread processes that are outsourced are marketing
and accounts, manufacturing, recruitment, switch board, web design and
maintenance, web hosting and IT maintenance, logistics and distribution, and
There are innumerable motivations why a business ought to consider outsourcing.
Several firms may not have the on hand skills needed to finish a process, handing
over this process to outsourcing companies may assure a higher success rate
rather than if the business itself runs it.
A further motive is that the process
may be hard to control, in general, or
possibly due to business growth.
Veteran outsourcing companies already
have the essential abilities and
familiarity to administer the process for
you. Moreover, the process can be
executed better, cheaper, and earlier too.
If a company has sub-standard in-house service, which may or may not be linked
to shortage of skills, or occasionally, a company may be short of the resources, or
the resources are not available in-house at all, in order to complete the process,
such as the case for smaller companies. Outsourcing companies can present the
Further reasons may be that you need your employees somewhere else in the
business and the process may not add to competitive advantage. Outsourcing
assists companies to modernize their business operations by allowing them to
spotlight on core income generating activities.
Outsourcing saves money on labour and operational costs which can deliver
significant savings and an increase in gross profit. It allows a company to redirect
its attention to its own competencies and hire outside resources to handle other
non core tasks.
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