Outsourcing

Outsourcing represents transfer of management of a certain function in the business field from a company or coorporation to a certain provider of services which is external to that company, i. e. one company contracting with another or with another person to do a particular function. The business segments which are usually outsourced include information technology, human resources, real estate management, accounting, facilities etc. But some companies can also outsource customer support, market research, manufacturing, web development etc. 

So actually the main goal of outsourcing is to allow companies to focus on other issues of their business without having to take care of the details. The details are taken care of by external experts.  In other words, the professional managers can use their time and energy for other, more important things within the company. The outsourcing company is often streamlined and what is very important it often can have excellent capabilities and access to new technology as well. Very often the client company cannot afford to buy this technology and this is where the outsourcing company comes into action. Furthermore, if a certain company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries. Today, there isn’t a single company that does not outsource in some way. The function that is being outsourced is actually not the core of the business.

It is necessary one to make a distinction between outsourcing and offshoring. These notions are usually used interchangeably in public discourse even though they have important technical differences.  Outsourcing is a process where a company makes a contract with a supplier.This contract can also involve offshoring.  Offshoring includes transferring a function from the organizational field to another country. And what is characteristic is that it does not matter whether the work is outsourced or stays within the same corporation/company.