Outsourcing is also known as Business Process Outsourcing (BPO). This is the process of hiring another individual or company, either domestically or internationally, to handle business activities for you. It has become a common business practice that allows small and medium-sized businesses to gain services and skills they would usually find hard to develop or hire because of either financial or manpower restrictions, or possibly a combination of both. Meaning, you can grow your business as and when you need to, without any major investment or with less cost.
Outsourcing also allows companies to focus on other business issues while having the details taken care of by outside experts. The specialized company that handles the outsourced work is often streamlined and will normally have world-class capabilities and access to new technology that a growing company simply couldn’t afford to invest in on their own. Plus, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries, too
Outsourcing is a common trend in information technology and other industries. Businesses outsource services that are intrinsic to managing a business and serving internal and external customers such as managing products, computer programs, application and infrastructure support service, can be outsourced. In some cases, the entire information management of a company is outsourced.