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What is Outsourcing?


Outsourcing can be defined as: strategic entrusting of certain processes within the internal production, that do not belong in the main activity of firms specialised in the management of these processes.

E-Sourcing is the granting of services and products within the IT domain, that cannot be easily adapted to the internal needs within the company that asks for this kind of packages.

Outsourcing on the first level - a company that entrusts processes to another company in a direct manner.
Outsourcing on the second level - the company that gives services and subcontracted products thru outsourcing, gives in turnthese products and services to other companies, in on a regular or integral bases.

The Outsourcing term knows other forms such as:

Offshoring is the outsourcing proces thru which a firm is subcontracted from another country. When the country is a neighbour then we can talk about "near shoring".
Out-tasking: this kind of outsourcing is definde thru the externalship of a well defined part in the internal production.

The main advantages of  Outsourcing

Low prices
The main reason for which companies look for outsourcing is the advantage of low prices. The company doesn't have to spend resources for activities that are not considered to be of main category, more over expenses cand be planed upon and even anticipated.

Acces to technologies, methods, qualifies perssonel
Ensures acces to technology, methods and qualified perssonel, in which the subcontracted firms have invested both financial and timely resources, during which they have attained experience in working with firms that have similar needs.

Risk management
By using outsourcing, the risks are split between companies. The product supllier has domain experience, offering products and services to more than one company at a given time, so the suported risks are diminueshed.
 
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