Bid on GetAFreelancer projects
See all projects

Wednesday, October 11, 2006

So what is outsourcing anyway?

Google defines Outsourcing as:

1-the concept of taking internal company functions and paying an outside firm to handle them. Outsourcing is done to save money, improve quality, or free company resources for other activities. Outsourcing was first done in the data-processing and design industry and has spread to areas, including telemessaging and call centers. Outsourcing is the wave of the future.

In computing, outsourcing can take many forms. A company, for instance, may outsource its whole IT operation, so that another outsourcing firm provides the hosting and maintenance of its servers and ensures that the system runs smoothly and runs its application development. This would be a total outsourcing solution, although many companies will often just pick elements of such a package.

Outsourcing (or contracting out) is often defined as the delegation of non-core operations or jobs from internal production to an external entity (such as a subcontractor) that specializes in that operation. Outsourcing is a business decision that can be made for quality or financial reasons. A subset of the term (offshoring) also implies transfering jobs to another country, either by hiring local subcontractors or building a facility in an area where labor is cheap

In easy-to-understand words: Oursourcing is when your company (or you if you are a freelancer) delegate your work to another professional specialized in the same field. If you do so to someone in another country it is called Offshore and the benefits are: same or more quality for much cheaper price...Interested? Read ahead!!