What is Outsourcing?Why do Companies Outsource?

Outsourcing is when one Company is contracting with another Company to provide services that might be performed by their employees itself but most of the times it is because of the financial advantages that come from it. For example Major Companies Outsource their Call centers, sometimes it is because of the reduction of work space and mostly it is because of the low expenses or cheap labor.

Ever wonder why a person with an Indian accent or an Australian accent serves you when you call a toll-free number that was displayed on the back of your Canadian bank card?Yes,Major banks from Canada have outsourced their Call centers to countries like India,China,Bangladesh etc. Other examples include major companies such as Wipro Outsource software projects to India. Mostly work is outsourced from developed countries to developing countries.

There are many reasons companies outsource various jobs, mostly because of financial advantage. Most of the Outsourcing services provide 24 hours service throughout the year which means services are more accessible and also reliable considering that there are lot of educated people in most of eastern countries .Companies could also focus on their development or other business issues while having small issues such as Call centres and payroll taken care of.