Online Outsourcing
Online outsourcing refers to the practice of hiring a third party contractor or subcontractor over the Internet to carry out business tasks that would otherwise have to be performed by an on-site employee. Outsourcing carries the benefit of cost savings for business owners, thereby allowing them to be more competitive in the marketplace. Critics of outsourcing believe that the practice often takes jobs away from local employees, particularly if a company outsources tasks to workers or companies in foreign nations. An individual job can be outsourced by a company, or an entire business process can be outsourced.
Companies often use online outsourcing to have a specific business process carried out. Examples of processes that can be outsourced include human resources, payroll and accounting. Rather than paying full time employees to carry out these tasks, a company will outsource the process and pay the third party company or individual to carry out the tasks when needed. Other times, a company may need a one-time task to be carried out. For example, a business may need a logo design. Rather than training an employee to design the logo, or hiring a new employee to do it, the company may outsource the task to an expert company that does logo design. Once the task is completed, the contract with the designer ends.
Online outsourcing is a method by which companies can increase profit margins, and sometimes keep more workers employed. Homeshoring, for example, is the process of hiring a third party contractor who works from home to carry out business processes. The employee is from the same country as the company hiring them, hence the name homeshoring. The employee can carry out tasks such as processing customer service calls, invoicing customers, proofreading and editing marketing copy, or other tasks. In turn, the company may pay the telecommuting employee a lower rate than a full-time on-site employee, and will often save on costs by not providing that employee with health insurance or other benefits. The employee often saves money by not having to commute to an office, and studies have shown that many workers are much more productive when working from home.
Many labor groups and other organizations are critical of online outsourcing. Some companies outsource technical jobs to foreign countries, which is viewed as taking jobs away from local workers. Companies are often able to pay technical employees a much lower wage than workers in their home country, and view this as a way to cut costs and increase profits. For example, many electronics engineering companies in the U.S. use online outsourcing to hire engineering companies in India; workers there are able to perform the same tasks for much lower salaries.
IT – OUTSOURCING
Information technology (IT) is a vital aspect of doing business today. With so many more consumers taking their business online, information technology outsourcing makes sense, as IT professionals are in big demand in most industries. In addition, many functions of IT can be managed more affordably by outsourcing to independent companies and individuals instead of using in-house providers.
Outsourcing information technology processes takes place in many industries due to several factors. Primarily, this is to control the costs associated with IT processes, some of which can be expensive to manage by onsite staff, who are limited by resources, time and equipment. When IT project needs change or budgets are limited, information technology outsourcing saves money and resources.
Another good reason why information technology outsourcing is used by many firms is because of time factors. Having additional IT support working 24/7 on a project can help improve the chances of getting it accomplished in a more timely manner. In many cases, this can dramatically speed up the time needed to complete a project by important deadlines.
Oftentimes, web or software development projects become
opinion of outsourcing was certainly limited and bias before taking courses in supply chain management. In addition to my poor opinions based on my thought that every business I call must have moved its call centers to non English speaking countries and NIKE shoes are no longer made in America, I had no clear understanding of outsourcing and why businesses were choosing to move our jobs! In this paper I will describe a company that relies on global sourcing, show how my opinion of outsourcing has greatly…
Business Process Outsourcing Lighttangent.com defined Business Process Outsourcing or BPO as the outsourcing of business operations which any company has to perform in order to keep their business running (“Business Process Outsourcing (BPO) – What is it?”, 2015) Meanwhile, Reynolds and Magno (2006) simply put Business Process Outsourcing as hiring someone else to do all of the chores while the company concentrates on core business, like manufacturing. Cecilia (2011) provided a similar yet more…
companies who choose to outsource their back-office increasingly look for time flexibility and direct quality control.[6] Business process outsourcing enhances the flexibility of an organization in different ways: Most services provided by BPO vendors are offered on a fee-for-service basis, using business models such as Remote In-Sourcing or similar software development and outsourcing models.[7][8][citation needed]. This can help a company to become more flexible by transforming fixed into variable costs…
Does Outsourcing Save Money COM/156 October 7, 2006 Jacqueline Lance In this day and age, we wonder why major companies outsource and whether they are really saving money. A website named investors.com said, “More than 1.3 million additional Western jobs will vanish by 2014 due to outsourcing”. Outsourcing to foreign countries can help save larger companies money, by reducing cost and increasing revenue. Companies are finding more ways to save…
• 1. WHY OUTSOURCING IN BULGARIABULGARIA EXCEPTIONAL TECHNOLOGY FACTS 1 • 2. Bulgaria offers the benefit of set in ease of doing business place legislation ease of movement through the EU stable economy low country risksolid political environment established labour laws and taxation 2 • 3. Where is Bulgaria? • Europe • Strategic location 3 • 4. Country Facts NATO membership Religion: 83% Orthodox Christian EU membership Government: Parliamentary democracy Area: 42,822 square miles Population…
Chamberlain | Outsourcing in India | By: Selena Benard | 2/14/2013 | Outsourcing by North American companies has brought many jobs to people in India and saved businesses money; however, it poses dilemmas that are both cultural and ethical in nature. Currently India is a major player the in the world of Business. ” The Indian economy is the world’s tenth-largest by nominal GDP and third-largest by purchasing power parity (PPP).” Part of this success is due to the Indian Business Processing…
The Good and Bad of Domestic Outsourcing Trends in maturing or new technologies have transformed the business landscape over the past decade. Whether it’s Cloud computing, Software as a Service (SaaS) applications, mobile applications, social media networking or digital media technologies, companies are beginning to demand greater choices, and faster product and service delivery. Technology and business process infrastructure is becoming easier to acquire and manage, lowering barriers to entry…
Scenarios in business security: A risk assessment James P. England CMGT/442 April 16, 2012 David Conway Scenarios in business security: A risk assessment The use of an external service provider for data storage The storage of data is the key to any business, and the security of this information requires a plan for safe storage with ease to accessibility for the company. Typical business storage growth is at 40% per year, and the efficient management of storage is a key element in…
Bastidas Allison Fernley English 1010 15 November 2011 The US Economy: What is there to do in an Outsourcing World? Outsourcing, most commonly known as “shipping jobs overseas” is an unavoidable epidemic of nature, whether you like it or not chances are you know someone who has been a victim of outsourcing. Being a victim of outsourcing myself, in the summer of 2009 working in construction, I found myself unemployed, due to a wave of unemployed mass of labor from…
able to move their domestic business operation to oversea, such as China, India and other developing countries, to lower costs. This business strategy is called outsourcing. When the concept of outsourcing was first introduced, only manufacturing companies try to outsource their jobs to other companies. But it is now common in a wide range of business activities. The total number of U.S. jobs outsourced in 2011 is 2,273,392. In 2011 the revenue of global outsourcing market was 95 billion U.S. dollars…