Dear Freelancer
Outsourcing is the process of contracting a business function to
someone else. It is sometimes confused with off shoring, though a function may
be outsourced without off shoring or vice avers. The opposite of outsourcing is
called vertical integration or in sourcing.
Of recent concern
is the ability of businesses to outsource to suppliers outside the nation,
sometimes referred to as outscoring or offshore outsourcing. In addition,
several related terms have emerged to grasp various aspects of the complex relationship
between economic organizations or networks, such as near shoring, multisource
and strategic outsourcing.
There
are several different kinds of outsourcing, based on the nature of work
outsourced. As we saw earlier, some companies tie up with service providers for
narrow functions. However it is also common these days to outsource entire
operations. This type of outsourcing can be placed in two broad categories,
namely Information Technology Outsourcing (ITO) and Business Process
Outsourcing (BPO). Business process outsourcing can again be sub divided into
call center outsourcing, human resources outsourcing (HRO), finance and
accounting outsourcing and claims processing outsourcing.
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