What is Outsourcing?

by Mark Orwell; Updated September 26, 2017

Not all jobs can be performed in house, and most businessmen these days know that. That’s why outsourcing has become so popular. It allows work to get done for a company via outside labor sources. While some people think this is smart business, outsourcing internationally has created a stir of controversy.

Function

When a company decides to outsource, it is because it needs to use its manpower, mone, and time in other departments. That’s why it allows outside companies to do the work for it. After choosing a company to work with, an outsourcing contract is worked up and both parties sign. Then, it is the job of the outsourced company to use their employees and their own money to get the work done by the time announced in the contract.

Types

There are a few types of jobs that are generally outsourced by most companies. One of the most well-known is telemarketing. Major computer and electronics companies outsource their help centers. Other jobs that are typically outsourced include ghostwriting work, market research, web design, engineering and computer graphics.

Benefits

Outsourcing work is very beneficial to major companies. It allows them to focus their efforts on taking care of some of the more important aspects of their business. It is also much easier to outsource some work to a company than to hire full-time employees for the job. This is especially true with web and computer work, because there may not always be a job for someone to do.

Considerations

While many companies love to outsource work, often this is done to countries outside of their home country. This has become a bit controversial. Many Americans, for example, believe that outsourcing to other countries takes away jobs from Americans and contributes to the country’s unemployment rate. Those taking jobs outsourced from America often complain of unfair wages, as well, which has sparked protests in the past.

Potential

The future of outsourcing is highly affected by globalization. AS the world becomes figuratively smaller, so does the way international companies do business. In the immediate future, more foreign companies are likely to move offices onto United States soil, but still consider being a source of outsourcing labor. This will give jobs to Americans and allow them to be paid fairly, while foreign companies can still do their business.