Outsourcing: The Hottest Business Jargon On The Block

  • June 16, 2011
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By Roy Jonathan del Rosario

OUTSOURCING, for most of the business people, is a new-born business jargon. But if you are not a business-oriented person or either a netizen (someone who has a vast know-what in the computer-generated world), the term would probably be an alien to your vocabulary.

Outsourcing refers to a service a contact center offers to companies to contract with another companies to offer services that might otherwise be done by internal staffs. Various companies now, transnational or local, now outsource tasks like e-mail and call center services, payrolls, animation, medical transcription, software development and business process outsourcing. But these tasks are operated by separate organizations that focus and specialize in each service.

Numerous companies outsource tasks for various reasons. But the major benefit seems to be the actuality that it saves capital. It is evident that many of the companies that provide outsourcing services are able to work for less money due to the fact that they have fewer operating expenses to worry about and they are not obliged to give benefits to their employees.

The proficient company that carries the outsourced tasks is often efficient and has first-rate competence and access to modern-day technology that a certain company could not avail on their own. Adding up to this, outsourcing is a cost-efficient strategy to begin creating foundations globally.

Outsourcing, as well, allows companies to concentrate on their core business agenda while having the details taken care by outbound specialists. With this, the attention and resources which supposedly been allocated for the already-outsourced tasks of the management professionals, could be given instead to more significant, more extensive matters in the company.

But like any other businesses, there are as well a number of shortcomings in the outsourcing industry. As outsourcing may land to deferred project execution and communications, there is a great peril of not being able to control some aspects of the company. Any sensitive details are more susceptible, and a company may become so much reliant upon its outsourcers, which may direct to troubles should the outsource provider back out on their agreement suddenly. Another is that outsourcing frequently eradicates direct communication between a company and its customers. This may prevent a company from creating and enhancing constant relationships with their clients and often lands to both side’s displeasure.

From the fact that outsourcing has proven favorably advantageous for many companies world-wide, it has as well many downsides. It is therefore a very vital factor that individual company correctly gauges their needs to determine if outsourcing is a feasible choice.
Source: http://www.wisegeek.com/what-is-outsourcing.htm

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