Outsourcing/Introduction
Definition
[edit | edit source]Outsourcing is the process of contracting out a specific task or function to a third party, rather than performing it in-house. This can be done for a variety of reasons, such as to reduce costs, gain access to specialized expertise, or free up internal resources for other tasks.
The global outsourcing market is dominated by two sub-industries: IT outsourcing (ITO) and business process outsourcing (BPO).
Business Functions
[edit | edit source]- Accounting and finance
- Human Resources
- Customer service
- IT support
- Manufacturing
- Marketing and Sales
- Research and development
- Web development
- Shipping and Logistics
Outsourcing relationship management (ORM)
[edit | edit source]ORM is the business discipline widely adopted by companies and public institutions to manage one or more external service providers as part of an outsourcing strategy. ORM is a broadly used term that encompasses elements of organizational structure, management strategy and information technology infrastructure.