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.