Outsourcing is an arrangement that alleviates a party of its duties or responsibilities. This is done by getting another party to assume those tasks. Business outsourcing, also known as business process outsourcing (BPO), refers to this type of arrangement when it involves one business handing over its administrative duties to another business or professional.
The types of tasks contracted out in a business outsourcing arrangement can vary. They can include accounting, human resources, and customer service. These arrangements can be a benefit in a number of ways.
One of the benefits of customer outsourcing is that hiring businesses that specialize in this type of work can be more efficient for a company than when it attempts to complete all of those tasks themselves. For example, a company’s accountant is not likely to double as a customer service agent. This means that two positions must be filled. If one of these employees is for some reason unable to perform, the other is generally not qualified to fill in.
Employing numerous people to complete specialized tasks can be expensive and complicated in some countries. The expense is derived from the office space necessary to house them, the salaries necessary to pay them, and the benefits they receive. The complications are often derived from the marketing and training necessary to get the best people to do the best job and the regulations necessary to lawfully maintain their employment thereafter.
Business outsourcing can also be a solution when skills are limited. In some areas, specialized business skills may not be available to everyone who needs them. To handle this situation, individuals in need may seek others to assume certain responsibilities.
The instances in which business outsourcing involves international partners grew substantially during the first decade of the 21st century. One of the primary reasons for this is because using foreign labor often translates into even greater savings. This type of business association is made possible in large part by the resources available on the Internet and the ability to use the Internet as a quick and effective communication tool.
Technology has also made it possible for business outsourcing to be done from a location of choice. Many people employed to complete the tasks that have been outsourced by companies work from home and Internet cafes. This can be a benefit for those individuals and for the companies that hire them because they also no longer need to maintain office space.