Fact of Outsourcing

Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. In general, the function is outsourced is considered non-essential for business. An insurance company, for example, may outsource its cleaning and gardening for the operations of companies that specialize in the types of work and not related to insurance or strategic to the business. The outside firms that provide outsourcing services are third-party vendors, or as more commonly called, the service providers.

Currently, outsourcing takes many forms. Organizations continue to service providers manage rental different business processes, such as benefits management. However, some organizations outsource whole operations. The most common forms are external information technology (ITO) and business process outsourcing (BPO).

Business process outsourcing includes call center outsourcing, human resources outsourcing (HRO), finance and accounting outsourcing, outsourcing and claims processing. These agreements involve the outsourcing of several one-year contracts that can be hundreds of millions of dollars. Often the people doing the work done within the client company and the employees are transferred to become the service provider. Dominant providers of outsourcing services in information technology and outsourcing business process outsourcing fields include IBM, EDS, CSC, HP, ACS, Accenture and Capgemini.