Friday, April 27, 2012


Definition of Outsourcing:

Outsourcing is the process of contracting an existing business function or process of an organization to an independent organization, and ceasing to perform that function or process internally, instead purchasing it as a service. Though this practice of purchasing a business function--instead of providing it internally--is a common feature of any modern economy, the term outsourcing became popular in America near the turn of the 21st century. An outsourcing deal may also involve transfer of the employees involved to the outsourcing business partner but it doesn't have to.
Outsourcing and freelancing

It is sometimes confused with offshoring which is “a company taking a function out of their business and relocating it to another country.” Outsourcing, on the other hand, can be either foreign or domestic.The opposite of outsourcing is called vertical integration or insourcing. However, a business function can be brought in house without involving vertical integration.

( Source for above definition is Wikipedia)

Outsourcing Pros and Cons

Outsourcing articles and outsourcing companies describe the following risks,reasons and advantages of outsourcing.
  • Major reason behind the outsorcing is the reduction in cost and savings.Cost assiciated with hiring people for that company would be higher than outsourcing the projects to freelancers who are found easily .Freelancers are always there on freelancing websites to make money online by their skills.Freelancers may be in foreign country who demand less money for same work at same quality and standards company wants.
  • Company has to bear many hidden costs associated with employees working with them.Some money they have to spend for welfare,medical and in terms of pensions.By outsourcing these said costs disappear automatically.
  • By outsourcing small projects and jobs ,company has more resources and money to focus on core parts of business thus getting more in business world.
  • In outsourcing ,company often finds talented people offshore or within country who can perform their tasks with excellence.
  • By outsourcing jobs, company provides more employment to offshore people than countrymen.Globally it is very good to reduce poverty and improve economic conditions of people but at the same time some times opportunities for the people of sam country are reduced accordingly.
  • When we look at advantages of outsourcing,sevices and goods produced by companies are produced at cheaper rates and hence prices of items and services are overll reduced in that country.Reduction in prices increase in buying power of people of that country.


  1. Nice post! This blog has given me a better understanding. Thanks a lot for such an informative blog post. Cheers!
    outsourcing jobs online | freelancing jobs from home

  2. Great post ! Try this data entry job..

    Earn while you enjoy time with your Family & Loved ones!
    Join us today visit

    Unemployed is Brave and a choice to be a Freeman.
    To get a form visit my Facebook Page


  3. I appreciate you and I would like to read your next post.
    Thanks for sharing this useful information.
    We know your time is very important.
    So, We will help you for finding many important website link that you need for every work.
    Just Bookmarks one website and get more website link .
    all important website link

  4. Come and see how THOUSAND of people like YOU are making a LIVING from home and are living their dreams right NOW.

  5. Great Post, I love to read articles that are informative and actually have good content. Thank you for sharing your experiences and I look forward to reading more.
    vehicle tracking solutions | gps tracking


Related Posts Plugin for WordPress, Blogger...