What is OUTSOURCING? 5 Important Features of OUTSOURCING

        Hello everyone in this blog we are going to see about what is meant by outsourcing and what are the features of it and what are the benefits of outsourcing.








 INTRODUCTION

                                                                Recently a new type of business in service sector has become popular in the world. It is called the Business Process Outsourcing(BPO). BPO refers to outsourcing the work which is routine in nature to an outside agency. For example if you are a content creator and you don't know how to edit your videos you can either learn to edit the videos or outsource it to somebody who has a specialization in video editing.

Let's get into the meaning, features and benefits of outsourcing.

Meaning of OUTSOURCING

                                                             The companies must identify their core competence and concentrate on that function and outsource all other routine function to outside agencies who are specialized in those functions.



Features of OUTSOURCING  

  1. Transferring Non Core Activities to Outsiders

                                                         Companies can transfer its non core activities or functions like maintenance, house keeping etc. to outsiders, depending upon the nature of the business and te activities are identified as core or non core activities.

2. Outsourcing involves Contracting

                                                     As the companies start outsourcing their activities focusing on their main business, the outsiders enter into an agreement with the company to perform the routine activities on contractual basis.

3. Improved Customers Satisfaction

                                                  The number of customers can be increased through timely delivery and high quality services. Outsourcing helps in customer satisfaction and results in repetitive purchase of the same product.



Core and Non Core activities

                               Companies can benefit in the long run provided they are the keen on their core activities rather than non core activities. A core activity involves experience, expertise, efficiency in the field of specialization. Non core activities can be outsourced to outsiders who are specialization in their areas of operation. 


       Benefits of OUTSOURCING 

1. Economic Development

                                Outsourcing stimulates entrepreneurship, encourages employment opportunities, expands exports and imports, enables it to tremendous growth of economy.

2. Encourages Employment Opportunities

                                     Companies that are outsourcing their non core activities provide chances for other small business units to take up the activities. This paves way for more job opportunities and new employment avenues.

3. Reduction in Investment

                                     Companies through outsourcing  avails the services of outsiders which in turn reduces the investment requirements. The amount so available can be utilized productively and this increase the profits.

4. Quest of Excellence

                                    Outsourcing enables the firms to pursue excellence in two ways namely excelling themselves in the activities they do and excel outsiders by extending their capabilities through contracting out.


Conclusion

                                   Outsourcing can transform any business into its next level . Outsourcing can helps us to tackle the hindrance of time. I think that the above information about outsourcing will be helpful for you if you are starting your own business. If u have any queries about outsourcing u can put it down in the comments section.



                                                                                                          

Comments

Post a Comment

Popular posts from this blog

Learn to learn : A comprehensive guide to Higher order learning

Image
  Priming or pre studying  Have you ever thought 💭 of creating meaningful relationships with the content you learn ? Yes, but how to do that, after watching some YouTube videos on learning and priming this is my overview of what I learnt  1. Try it  1st thing to find the learning objectives go through it get a rough idea 💡 about it don't try to memorize and  don't try to find the minor details for each concept get an rough idea about it.  Try to find bold letters and keywords Try to find relationships and create your own hypothesis. It may be wrong but give it a try and once you start actual studying find the gaps in it . By doing this we are creating a imagined story in our mind it can be true but by doing this, we are creating relevance within ourselves with the subject as once relevance is formed there is no need to memorization.  So the first part is to scope the information for about 10 minutes .  what to do in lectures ? DON'T WRITE when t...
Read more

how to choose right auditor for articleship ??????

How to choose the right auditor  ???? ✅Principal - article  ❌ Employer - employee  A subjective concept  What is ur objective  To clear ca finals and become a chartered accountant.   it is an additional and mandatory program u cannot do dummy articleship 😸 - will be exposed in 3 to 6 months after becoming a ca My objective is  A. Filing GST / IT returns and ROC filing  B. Learn to do BANK audit ( raja vazhkai )  Points to be noted  1. U cannot become a expert in this  field in 2 years ( master of all jack of none )   2. Understand work - life - study balance.  3. U want something u need to ask  Ketta kedaikum. In every place ? - therilayae papom 4. Adhere realities. Bribe ??? Kudukanum  5. Ask  in the right manner in the right sense and in the right time. 6. Extra work DO but why sir ???  Assumption - Auditor remembers  what u have done in the past. In those last 6 months if you need any...
Read more

Book Review: The Subtle art of not giving a f*ck

Image
 Introduction                          The subtle art of not giving a fuck is a book written by Mark Manson. Mark is a star blogger who has about 2 million readers. This book is the first book written by him. He tells us that the good values are created through pain also that pain is the part of the process. 12. Best points from the Subtle art of not giving a fuck 1. Desire for a positive experience is a negative experience and desire for a negative experience is a positive experience 2 . Happiness comes from solving problems. To be happy we need something to solve. Happiness is a constant work in progress, because solving problems is a constant work in progress 3. Solution of a negative experience is the acceptance of it not the avoidance of it. 4. There is no such thing called as personal problem. If you've got a problem chances are millions of others people have had it in the past, have it now and they are going to...
Read more