Outsourcing
Posted on February 18, 2008
Filed Under Business |
Outsourcing is basically subcontracting a process, management and/or day to day execution of a business process to a third party or an external service provider. Companies normally outsource to lower their operating costs, conserving energy directed at the competencies of a particular business, or to make more efficient use of labor, capital, technology and resources. One example of outsourcing is hiring a virtual assistant or subcontracting another company to do your bookkeeping, web development or marketing collaterals.
There are three main categories of outsourced business process: 1. Information Technology Outsourcing (ITO); 2. Voice Outsourcing; and, Non-voice Outsourcing. ITOs are outsourcing firms where you can outsource the design, development, implementation, and management of IT products - web design and software development falls under this category. Voice Outsourcing basically includes call centers. No-Voice Outsourcing includes accounting, marketing, sales, and everything that does notfall under ITO and voice outsourcing.
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