Outsourcing/Introduction

Definition

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

• 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)

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.