Outsourcing projects involve sub-contracting a business process or service to a third party company. Projects here could mean any of the core or secondary functions and processes of companies that they deem more economical and convenient to sub-contract. There are many numerous business processes that could be outsourced. These processes may include IT functions and infrastructure, customer management, human resources, accounting, customer contact or call center functions such as telemarketing, support services, market and business research.
Business process outsourcing has become a standard practice of large multinational and transnational companies. Medium scale industries on the other hand also practice outsourcing projects on selected and few business functions. Some small and start-up companies outsource business processes that they could not management because of capital limitations. These projects may include the IT segment and technology infrastructure deployment or some functions of human resources such as hiring, investigation, and applicant screening.
The most significant impact of outsourcing projects to third party entities is its cost-effectiveness. Companies find outsourcing as a good alternative to cutback on internal overhead expenses and maintenance of personnel and technology. Outsourcing also eliminated the need to maintain redundant business processes. This could streamline the corporate organization and could lead to more efficient business operation. Through outsourcing, companies can focus more on their core processes and competencies. It could also diminish variability on most business process so that these variable functions can be projected as a fixed capital outlay. In the end, companies that outsource some of their business process can achieve financial management stability and optimized operation.