Outsourcing is the process where a company uses a third
party to perform work that is normally performed in-house. Outsourcing can be
used for many different types of activities such as payroll, accounting, sales,
distribution or computer programming. In recent years, offshore outsourcing has
grown in popularity as companies have discovered that foreign labor is cheap,
efficient and the level of English proficiency adequate to facilitate business
transactions.
The most obvious benefit of outsourcing is that it can save
money. This is not necessarily the most important consideration. Often,
companies are stretched for resources and are forced to make strategic
decisions about where to best deploy human capital. The opportunity cost of
doing tasks that consume time can take focus away from core business
activities. Outsourcing can be used effectively to take charge of tasks that
detract from business performance.
