What is the Essence of Outsourcing?
What is Outsourcing?
Outsourcing is an outside business process service hired to do for a certain business function. So, on broader sense, outsourcing can be any kind of service that concerns the operation and marketing of a company. This can be in manufacturing, a customer service department, an IT marketing service, or a human resource department.
China and America
For instance, an American based company lets a third party firm do its manufacturing as those of the popular, established companies like Nike or Guess. China is manufacturing Nike basketball shoes and Guess jeans. Nike and Guess are American companies that let China labourers make their products.
We all know almost all the material things we possess are made in China. And China is not known for a country that creates brands. Since the labour costs of China is low, American companies let the Chinese do the job in manufacturing, franchising, and even the operation.
IT outsourcing is another type of outsourcing. This takes care of the marketing functions of a company such as Internet marketing. It does the jobs that have something to do with the World Wide Web.
This is one type of outsourcing that is a trend in today’s business. Since businesses nowadays need marketing, and there is no better venue to market a product than on the Internet, IT outsourcing handles the marketing campaigns of a certain company.
The essence of outsourcing is that if you’re the business owner, you don’t have to spend lots of money to operate a business since there are outscoring firms in other countries that do the job. The great thing is that the labour costs are cheap. So why hire people within your company when you can hire an outside source?
Most of the companies that hire outsourcing services are mostly based in America, Australia, UK, and some other developed countries in the west.