What is Outsourcing?

What is outsourcing, really?

Outsourcing, in layman's terms, is the act of contracting another entity, whether a company or freelance individuals, to a do a certain job that normally can be done by yourself or your company in itself.

Main consideration is financial savings in terms of labor costs. Commonly outsourced responsibilities are customer service, technical support, back-office processes and other call-dependent services.


In this era of globalization, it is really a must for business to save as much as possible in any aspect of their business.

It is a practical strategy to outsource, say the customer service aspect of a business, rather than maintain an in house customer service department.

And with countries like China, India and the Philippines, offering outsourcing with almost a fifth of the usual labor cost in the US, it is very very desirable to do so.

However, there still are certain drawbacks in this business strategy. But that should be tackled on another post. The main thing is you already dipped your finger into knowing what basically is outsourcing.