Outsourcing in general can be defined as passing of service provision or production to another internal or external party. The chief reason of outsourcing is to reduce capital expenditure over a business process. Also management gets more time to concentrate over core competencies. This also reduces the dependency upon internal resources and increases the flexibility to meet the changing business and commercial conditions.

In today's highly competitive world, management is forced to aggressively pursue ways to achieve efficiencies, improve customer services and save money, in the most tempting way of which is to outsource all non-core business processes and activities. Outsourcing helps company in one or more of the following ways:

• To reduce or stabilize the costs.
• To access advanced technology,
• To compensate for a task of skilled IT workers,
• To improve business efficiency
• To remain competitive in market place.