Question: What Is Outsourcing Give Example?

What do you mean by outsourcing?

Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company’s own employees and staff.

Outsourcing is a practice usually undertaken by companies as a cost-cutting measure..

What companies use outsourcing?

Here are six highly-successful companies that have used outsourcing for their software development to grow their business.Slack. The web interface of this favorite corporate communication tool was designed mainly by MetaLab, a design firm. … GitHub. … Skype. … App Sumo. … BaseCamp. … Alibaba.

What are the 2 types of outsourcing?

Today, there are many different types of outsourcing that can increase a business’s productivity and reduce costs….A few of the main categories include:Professional outsourcing.IT outsourcing.Manufacturing outsourcing.Project outsourcing.Process outsourcing.Operational outsourcing.

Does McDonalds use outsourcing?

The McDonald’s supply chain is 100-percent outsourced: the company owns no factories and no distribution centres. … McDonald’s does own approximately 30 percent of the restaurants although the rest are franchised, with the franchisees operating within a certain framework.

What are the types of outsourcing?

These Outsourcing services are often grouped into five main categories: professional process, manufacturing, process-specific, operational and project Outsourcing. These types of Outsourcing services can also now be found outside of the country.

Which is best example of outsourcing?

Examples of companies that outsourceAlibaba.WhatsApp.Basecamp.Google.TransferWise.Skype.Slack.

What are benefits of outsourcing?

Benefits of outsourcing your business processesCost advantages. The most obvious and visible benefit relates to the cost savings that outsourcing brings about. … Increased efficiency. … Focus on core areas. … Save on infrastructure and technology. … Access to skilled resources. … Time zone advantage. … Faster and better services.

What is another word for outsourcing?

Noun, singular or mass externalisation, sub-contracting, offshoring, subcontracting, externalization, contracting-out, delocalisation, Sub-contract, contracting, subcontract.

What is the process of outsourcing?

What Is Business Process Outsourcing? Business process outsourcing (BPO) is the practice of contracting a specific work process or processes to an external service provider. The services can include payroll, accounting, telemarketing, data recording, social media marketing, customer support, and more.

What are the pros and cons for outsourcing?

The Pros and Cons of OutsourcingOutsourcing vs. … Pro 1: Outsourcing can increase company profits. … Pro 2: Outsourcing can increase economic efficiency. … Pro 3: Outsourcing can distribute jobs from developed countries to developing countries. … Pro 4: Outsourcing can strengthen international ties. … Con 1: U.S. job loss. … Con 2: Lack of transparency.More items…•

What are outsourcing strategies?

Outsourcing is a strategic decisionCorporate StrategyCorporate Strategy focuses on how to manage resources, risk and return across a firm, as opposed to looking at competitive advantages in business strategy by a company to reduce costs. … The process of outsourcing business functions is also called contracting out.

What is outsourcing and how does it work?

Outsourcing is giving your work to someone else outside of your main business. That could be through freelancing, or by hiring another firm (like a call center) to handle segments of your business. You could even outsource by shipping a business process like manufacturing overseas.

Is outsourcing good or bad?

It helps the global economy. … Basically, outsourcing is helping the US economy bounce back from the recession. A study from Harvard University have seen that “outsourcing likely to be beneficial to the United States as a whole” and “in the long run, outsourcing is likely to be a good thing for the U.S. economy”.

What are the features of outsourcing?

Outsourcing benefits and costslower costs (due to economies of scale or lower labor rates)increased efficiency.variable capacity.increased focus on strategy/core competencies.access to skills or resources.increased flexibility to meet changing business and commercial conditions.accelerated time to market.More items…•

What is BPO in simple words?

Business Process Outsourcing, or BPO, refers to the process of contracting standard business functions to be handled by a party outside of the company. BPO functions most commonly outsourced include: customer service. accounting. payroll.