What is Outsourcing and How Far Can This Practice Go?


Today, outsourcing has become a business strategy for companies that want to save costs on labor or manpower, by assigning some of their in-house tasks or functions to third parties. Having said that, outsourcing is defined as the practice where a company or an individual renders services, produces items or completes task for another organization or company.

Outsourcing at http://www.nrservice.com.br/ is a popular practice in industries that involve information technology, but other industries can benefit from this as well. Technology today has made possible for businesses to outsource even the most essential functions of the company that serve either its internal and external customers or clients. An example of these functions are but not limited to bookkeeping, payroll, copywriting and other customer service functions for after-sales care, product upgrades to billing and processing payments. Some companies even outsource their risk-management, business planning and analysis functions.

Other than saving on physical space, overhead and costs of manpower, there are plenty of other reasons companies outsource what used to be in-house functions. One of which is for the company to increase focus on their core operations. To do this, they want to do away with worrying or handling departments or functions that are seen as “support” systems only. Many companies have seen efficiency and greater productivity in their main products or services, thanks to outsourcing. On the other hand, the companies that provide the outsourced service, benefit from the increase in job opportunities. Know more about outsourcing at http://www.huffingtonpost.com/heidi-murphy/five-reasons-to-outsource_b_3957805.html.

The word outsourcing often applies to services obtained offshore, places outside of the country where the company paying for the service or product is based. These offshore places are usually places where labor costs are low. Many companies, banks, cable and telecommunications companies are a few of the organizations that have benefited from this. For example, billing and payment and other customer services processes for cellphone companies are just a few examples that can be outsourced offshore.

On the other hand, not all offshore outsources services are effective for certain companies. Thus there are cases where the “Outsourcing” practice is done inshore. The practice then becomes “Insourcing” though the idea is still the same the only difference is where the third party is located.

Needless to say there is a company that manages bad debts for another company. There only a few companies willing to take this risk of taking the responsibility of collecting bad debts. For more information on outsourcing check the web at www.nrservice.com.br.


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