Business outsourcing essentials
November 02, 2012 // Posted by: cooldude // Category: Business Tips
Business outsourcing involves going contract of certain responsibilities of some functions to another party outside the business organization. In its original sense, the term associated itself with the manufacturing firms like Coca Cola that had outsourced a very large segment of the supply chain of the company. The services include human resources, accounting, finances and also front office.
It is called offshore outsourcing when the services are contracted outside the country of the company. It will be known as near shore outsourcing if the services are contracted to a nearby or a neighboring country. On most cases the businesses processes are based on information technology. They are termed as ITES BPO and two of the major sub segments of it are LPO or legal process outsourcing and KPO or knowledge process outsourcing. Outsourcing can be very effective when it comes to the flexibility of the business. It may also strengthen global economic relations.