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What is Outsourcing?

Outsourcing is the strategic use of external resources to perform activities traditionally handled by internal staff. It's a cost-effective means for businesses to improve efficiency and focus on core objectives. By tapping into global talent, companies can gain competitive advantages. Curious about how outsourcing can revolutionize your business operations? Let's delve deeper into its transformative potential.
T Thompson
T Thompson

Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees. Often the tasks that are outsourced could be performed by the company itself, but in many cases there are financial advantages that come from outsourcing. Many large companies now outsource jobs such as call center services, e-mail services, and payroll. These jobs are handled by separate companies that specialize in each service, and are often located overseas.

Reasons to Outsource

Tech support is one of the most commonly outsourced industries.
Tech support is one of the most commonly outsourced industries.

There are many reasons that companies outsource various jobs, but the most prominent advantage seems to be the fact that it often saves money. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers and have fewer overhead expenses to worry about. Depending on location, it may also be more affordable to outsource to companies located in different countries.

A large company may outsource call center services to handle customer inquiries.
A large company may outsource call center services to handle customer inquiries.

Outsourcing also allows companies to focus on other business issues while having the details taken care of by outside experts. This means that a large amount of resources and attention, which might fall on the shoulders of management professionals, can be used for more important, broader issues within the company. The specialized company that handles the outsourced work is often streamlined, and often has world-class capabilities and access to new technology that a company couldn't afford to buy on their own. Plus, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries.

Possible Disadvantages

Businesses engage in process-specific outsourcing when they hire companies to transport goods.
Businesses engage in process-specific outsourcing when they hire companies to transport goods.

There are some drawbacks to outsourcing as well. One of these is that it often eliminates direct communication between a company and its clients. This may prevent a company from building solid relationships with their customers, and often leads to dissatisfaction on one or both sides. There is also the danger of not being able to control some aspects of the company, as outsourcing may lead to delayed communications and project implementation. Any sensitive information is more vulnerable, and a company may become very dependent upon its outsource providers, which could lead to problems should the outsource provider back out on their contract suddenly.

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Discussion Comments


What is outsourcing documentation in shipping management?


How can I learn outsourcing?


If you want to see what happens when outsourcing and use of temporary workers gets out of hand, just look at what transpired in Canada this past week.

The Royal Bank of Canada has brought in temporary foreign workers from India through iGate and the RBC staff that are losing their long time jobs to the Indians and are being forced to train them before they become unemployed at the end of April, because they don't know how to do the work.

The entire country is in an uproar after finding out how many jobs have actually moved to India and elsewhere, and how many foreign workers were in Canada taking whatever other jobs are left.

Tons of people are pulling all of their money, mortgages and whatever else out of all the big banks and putting it in the credit unions, and I do mean tons of people.

They are now making use of the over ninety-page list of businesses that use temporary foreign workers and outsource work that has been published to start a major boycott movement against those businesses.

The unions are footing the bill for a class action lawsuit on behalf of the displaced workers if they want to pursue it, and have offered to help any other displaced workers.

The press is all over this, and are doing some fantastic investigative work and spilling the beans on all of these companies.

Canadians are mad enough and taking such assertive action that our government is working right now as we speak, to make major changes to the temporary foreign workers program so that the jobs go to Canadians first instead. IGate is also under investigation now, regarding the paperwork they submitted to bring these people into Canada.

Canadians are speaking with their wallets by pulling money out of the big banks (including lots of business owners as well), boycotting, refusing to discuss business on the phone with foreigners, and have a letter writing campaign to government officials underway and there's now talks of possible cross Canada demonstrations.

With just under a million and a half Canadians (who are fully qualified to work) unemployed while our jobs are going to foreign temporary workers or are being outsourced to the point that university grads can't even get a job at McDonald's, Canadians have had it.

We're fighting back like never before and are determined to not stop until we bring our jobs back to Canada.

With the Canadian government including immigration Canada, the big unions, honest business owners who hire Canadian, and the Canadian public all in on this, I think we may finally see some changes in how business is run in this country.

I realize and appreciate that those from India need work, but it shouldn't be at the expense of others who lose their jobs to them.


Outsourcing is good if it's within the same country. It still provides jobs (maybe more), the process of tasks are carried out quicker for the company outsourcing rather them doing it themselves.

Off-shoring might seem difficult for some people to get used to as it takes away jobs, queries are handled overseas (bad communication etc.). For a company who is outsourcing their service, they need to have thought it through and know they can rely on other companies.


Outsourcing takes many forms. Organizations still hire service providers to handle distinct business processes, such as benefits management. But some organizations outsource whole operations. The most common forms are information technology outsourcing (ITO) and business process outsourcing (BPO).


The two who mentioned about seeing the bigger picture are right. See where outsourcing is now, do a comparison of companies, and determine if your countries lost more or gained from outsourcing.

Companies did intensive market research and made educated decisions. The least other people can do is make educated opinions and not misplaced, misguided, unfounded accusations.


I don't know why so anybody cares so much about this. If we trust each other as a planet, why not share resources?


If you complain about outsourcing, you must look in the mirror. It's the population that complained about high prices and wanted lower prices that caused this.

When consumers went to companies who offered lower prices, other companies had to follow suit or be run out of business. It's greedy consumers, not company owners who are the cause of outsourcing. Look at nearly any product on the market and it was made out of the country, unless you're living in one of the normally outsourced to countries. Why is this so? Because greedy people want items for cheap. That's why there's outsourcing.


Outsourcing is not new. It has been there since the very start of any kind of industrial activity. Whatever is its business, no company does everything by itself. It has to buy products and services of other companies to complete its own products or services.

Outsourcing to a company overseas is called Offshoring. Offshoring is a trend which is increasingly being used by all corporations to remain competitive in the market and provide increased value to shareholders. In a globalized world, and in an information age where boundaries (geographic, national etc)are increasingly becoming blurred, outsourcing is bound to happen. With time, it is only going to become more mature and diverse in nature. It started predominately with call centers, back office operations, to system development and support. Now companies are exploring offshoring critical system support and development also.

Don't view India and Indians as culprit. India just happens to be one large beneficiary for various reasons. It has world's largest English-speaking population, and nearly 12 hour time zone differences, which allows around the clock support, innovative business models and a qualified pool of millions competing with each other to do their best. Other countries like the Philippines, Taiwan, Indonesia and China, etc. have already started reaping the benefits.

In this flat world, outsourcing and offshoring can not be stopped and if stopped, it will prove detrimental to the complete organization itself.

There is only one way great Americans can stop it and that is by working harder and smarter(like the generation which built the USA into what it is today) and demonstrating more value to his/her company than realized from outsourcing or offshoring.


Outsourcing/off shoring should be a thing of the past. Why? Customers communicating with foreign workers cannot understand them due to the language barrier. American corporations don't have to pay the American worker insurance benefits. Nope! They provide insurance to American workers out of the kindness of their hearts.

With Obamacare looming in 2014, American corporations should seize on providing insurance. Stop outsource/off-shoring and bring back back office jobs to the USA. American workers bring the personal touch!


Outsourcing kills good American jobs. Big corporations and and businesses use this to reduce their cost but they will get a headache they won't forget. Just check in five years from now and see how many skilled workers they will find in IT!

I think India can do much better than just becoming cheap IT labor for the global market.


Yes, outsourcing kills the U.S.A. Not even an arguable point. I'm glad India can feed their families from it, but we have to figure something out so everyone is happy. I look at a particular website, and when I see the pathetic rates people are offering for things that take days or weeks to do, I want to vomit. I guess the money must translate to more overseas.

What else is it but a tax fraud gateway? It also ends up helping India, which, by all means, I'm for, but over here, it helps out the worst of the worst. Cheap, shady owners.


Why should I use outsourcing instead of employing trained and skilled people?


@Anon78813: You're going to blame Indians for the outsourcing that your own country is doing? Don't blame Indians for not speaking English. Blame the greedy corporate country in which you live in that outsources so it doesn't have to pay you more and give you benefits. Other people exist in this world.


Outsourcing is kind of bad. Think about it. It's like saying the people in these Third World countries are not even worth paying the same amount as people who live in the U.S.A. I get that business is about making profits, but do we forget that we are humans before businessmen?


I'll tell you about outsourcing. Anyone who thinks outsourcing is good, doesn't understand the offshore model at all. Indian firms consistently hire and employee completely unqualified people. After working in the IT industry for many years with them, I can absolutely tell you that they hire people fresh out of college without the first qualification for the job they will be taking. As a result, which is no fault of their own, they write the worst code of anyone on the planet and continuously create problem after problem.

The unfortunate part for the Indian people themselves is that there will eventually be a backlash and the madness will come to an end.

In short, outsourcing is taking a lot of your skilled jobs, and filling them with unqualified college kids with written and verbal communication handicaps. Great idea. Not. Larger IT companies have already realized this and on to the next big thing they call BestShore. That means only repetitive, low skilled jobs are sent offshore and your skilled jobs are kept here at home. Thanks to all the corporate greediness and jumping in blindly, I'll be rewriting some of this mess that's been created for years.


America has lost its diversity in the tech sector. That was a big part of what made it great! I think it is cultural but managers from India only hire other people from India.

I just lost a wonderful, ethnically diverse team to layoffs. Now they have all been replaced with visa holders from India. I have nothing against India, but American high tech was built on diversity and now that is gone, so it makes me sad.


Outsourcing is like you have a food company, but you don't know how to deliver and distribute that food. So you use FedEx to ship the foods for you instead of the food company shipping its own food by itself.

It is cheap and effective because FedEx knows and is the expert when it comes to logistics.


Even though I suffered in the hands of the foreign call centers many times, lack of communication, lack of manners and courtesy, etc., but I would even put up with all that if it will keep more Indians in India!

To 102277: I have no intention to come to yours, but please stop coming to mine. As for taking my job and shoving it, you tell that to millions of Indians who earn a living through those jobs and how they would feel if we took those jobs and shoved them.

If they could have found jobs that paid in India, they wouldn't be working for the call centers that you think are exploiting your citizens! Oh, and I forgot to add: what about the millions of Indians who can't wait to leave India as soon as they find the way? You don't see many Americans coming to India for jobs and settlement do you?


Outsourcing is something very common now and very nice, actually. Many companies can focus on their core competencies and outsource the services they are not very good at but still need for the final solution they offer.

Outsourcing is especially popular in Europe. Many companies do not see so many benefits of going to Asia and prefer to stay closer to their home offices, saving on travel expenses and time zone differences.


Outsourcing is hurting our economy, and most of those are jobs that US citizens held, and now our unemployment rate has gone up as a result of it.

If our president would get off his butt and do something about it, things would be better but he's too lazy to do that.


outsourcing is helpful for firms.


I think outsourcing is a lazy person's way of making a buck. Remember the ill gotten gains of the banks and impact it has had on us all.


I think this is the best information for my knowledge.


Can I get an example of outsourcing please? I am a high school student studying for an exam, and a simple example would be appreciated as I don't fully understand the concept. Is it if a coffee shop franchise, for example, buys coffee machines from a small business supplying coffee machines? Please help.


can anyone outline some issues which would face for an IT outsourcing company due to heavy staff turnover in the IT industry?


how can i get some outsourcing job or work?


I have a lot of time after my work. i want to be a outsourcer. how can i get a outsourcing work or job.


Is there a web site that lists companies that offshore jobs (and which jobs they offshore?)


Outsourcing is not only for big business. Many small companies are now seeing the benefits, given the global recession. Outsourcing back end tasks can free owners of small businesses to concentrate on their core business, and leave the rest in efficient, professional hands.


Outsourcing is right for both stakeholders and workers globally; it's the law of comparative advantage, right? We just started a CAD outsourcing firm and it makes sense to source this lower-cost activity abroad rather than pay US rates, right? Everyone wins.


Hi Sheka - just pay the vendor directly. No need to worry about withholding and reporting. That's the vendor's responsibility.


Outsourcing may be viewed by Indians as if the foreign companies are appreciating their expertise in the particular area. Sure they are, but more important to them is their cost reduction, and it's an articulate statement given by them that countries like India can be hired very cheaply, even though their skills are world class. This is nothing but ridicule, but then outsourcing is a major reason for the boom of the service sector in India, and we cannot overlook the employment it provides.

With indigenous employment generating capacity to the poor, we are not in a position to refuse foreign jobs.


Frankly, India doesn't need any jobs from US or anywhere else. While it is true that a lot of international companies from both US and other countries have set up shop here, it has had virtually zero impact on the economy's health. However is has been a tremendous benefit to businessmen in both India and US.

In fact, total work outsourced to India accounts for less than 1 percent of the country's GDP. I'm completely against shifting jobs and I completely support other views in this regard, however there is another side to the coin - the outsourced companies who are operating in India are nothing but sweat shops where people being exploited ruthlessly - the working conditions are horrible. Try working only the graveyard shifts for years together and figure its impact on health and family life.

Further, the employees are forced to adapt to an alien culture and language besides dealing unfriendly and ignorant customers, who feel every Indian is responsible for their job loss.

We have created a workforce of over 2 million people who work in outsourcing - but they cannot be offered employment in any other industry in India because of their odd skills, weird accents, work hours and pathetic skills.

India is far more robust and no, we don't live in shanties or shacks, nor do we live on borrowed funds from banks - remember subprime? The only thing that comes to my mind is David Allen Coe's song - "Take this job and shove it". You are welcome to take your business where you deem fit. Don't come here no more.

Good riddance! More people will celebrate in India when outsourcing ends.


No one can work better and more efficiently than Indians. That is the truth.


Great post. At least you were able to clearly explain what is outsourcing and how it works.


I've tried outsourcing data entry of my office documents and reports and it's a very amazing experience to have time with your family instead of typing for hours in front of computer. What a priceless way of buying quality time for your wife and your kids.


Some of you are confusing Outsourcing with Offshoring. Companies that are outsourcing are cutting their costs down but an employee is losing his job due to the fact that he is no longer needed.


If outsourcing is awful, don't buy from the companies that outsource offshore.


Outsourcing has created many opportunities for companies. In fact, many of the companies that exist today would not have survived after the recession due to the fact that their customers asked them to cut costs by a large sum.

Not only this, but the companies that are not outsourcing are losing. They are not villains searching to do massive layoffs -- it's a necessity.

In order to compete, we must become more educated, and therefore more productive. Meanwhile, we should educate ourselves on what outsourcing actually is, because it is not only designed to cut labor costs.


Look at yourselves, your standard of living over there is less than ours. In America we actually need a decent job to pay for the things we've earned. Such as our car, a house, and other needed things. You can get paid less because I'm sure there are no bills for a shack, or much less a bike. And another thing, learn some English. Because if outsourcing does continue I want someone on the line who can speak it.


i bet some of you change your tune when your company gives you the axe and moves their IT department to india because they will work for pennies on the dollars that you got paid and leaves you in a sea of unemployed IT workers looking for work. All that just to save a buck.

So the next time the boss tells you about that trip to rio, remember he gets paid whether you are there or not. Good luck in the job hunt.


React to Madonna: BPO and its globalization is one way of slapping people like you who think that you are a better person than people from India or Manila. Simply because you are of western origin doesn't make you the most elite citizen of this world. You may speak English pretty well but I dare you, there are more people in India and Manila who are far more intelligent than you are.

I don't agree with you that countless Americans feel the same way you do because honestly my dear, countless American business people are outsourcing, not only for cheap costs but for third world countries' expertise and know-how. Those who whine about losing their jobs at your end, are simply whiners.

So let's see who are the better group of people now, those who don't give importance to their company, thus losing it in the process or those who are grabbing honest living offshore?

Don't be too self-righteous Madonna, people at your end should be happy that you share privileges among those who are in need. Don't just count your blessings, share them if you must.


"If you don't want to lose your job, perform better and work for cheaper."

Oh, the arrogance before the fall...

Well, we have no intention of accepting India's second rate standard of living. We worked hard for what we have. And we didn't abuse a foreign visa program to steal jobs from other countries.

And remember, it was America's IT innovation that makes your job possible in the first place.

And for the person saying that people must analyze the outsourcing situation and see its effects, well I have.

We got an Indian IT manager a year ago. Within six months, 60 percent of the IT department was let go. At that time, we had great diversity. Our workers were mostly US citizens and of all ethnic backgrounds and even some foreign workers which we valued greatly.

I survived the layoff. As things picked up again business-wise, we began hiring again. We were encouraged by our HR department to suggest candidates. At least three of my colleagues and I put up some very qualified candidates. None of them even got an interview.

When the re-hiring was done, all the new hires were Indian H1b workers or had worked with the Indian CTO before. A few were non-indian -- just enough to keep a discrimination lawsuit from happening.

100-plus American jobs lost in our department, nearly all of them replaced by foreign workers here on visas working for less than half of the pay scale for those positions.

Many of those who were displaced are still out of work eight months now and counting. The nepotism I have seen at the hands of the IT manager is disgusting and un-American.

So as you start considering outsourcing, be sure to remember what the writer of the article above isn't telling you, that the worst downside of outsourcing is the displacement of American jobs (maybe your neighbor) and the dragging down of wages and standard of living in the pursuit of the almighty dollar.

The future of outsourcing is in doubt. The backlash is rearing its head again on the abuses of the Hb1 visa program and outsourcing companies giving lectures on how to 'avoid hiring American workers'.

As the recession continues, expect legislation to stop or correctly regulate the practice which has been a cancer on the American workplace and innovation.

I see now that some US companies are now pulling out of India in favor of indonesia or China who will do the work for even cheaper than India. Where will the compulsive single minded approach of outsourcing end?


I agree with anon 17241, you have to look at the overall picture. If it keeps a company alive, people employed and gives them a chance to grow then it is a win/win solution.


Outsourcing can be both good and bad for folks. But what I am doing lately - just has to be a joke, take some online sites. There are swarms of bidders undertaking work that would cost say £300.00 now being done for as little as $30.00 - who's watching quality?

And big fat cats asking for clones to be made for peanuts - who will pay the bill for copyright infringements when they get a knock on the door? Come to think about it, does anyone give a monkey's ... about copyright infringement anymore? And if so, who monitors it?

I live in the UK and if this carries on; I am out of this flash development game. What I have being thinking now is to get into something that cannot be outsourced, but what?

Like some of the previous comments made, I do really feel for folks losing their careers and jobs, due to outsourcing.

But please, do not blame such countries as India or China for this. They are provided with an opportunity to make an honest living, and are all too right in taking it; that's what we in the West have done for hundreds of years.

But, as with most things these days, something's got to be done about one's jobs prospects disappearing overseas. Otherwise, both America and UK are doomed and deemed to be the next Third World Countries. Simple.


Outsourcing is meant to benefit the rich and crush the poor.


what are the different approaches to outsourcing?


I think this is the article that has generated the highest comments. Please, read The World is Flat by Thomas Friedman for an in-depth analysis.


It is important to recognize the purpose of organizations within our country:

Business: profit and economic needs

Government: social (including employment) needs

Churches: religious needs

Schools: education needs


Don't discredit companies for doing what they were established to do - generate profit for the shareholder. They employ Americans, but that is not why they started the company. Ask yourself, would you start a company and invest millions in it, putting yourself in financial debt to creditors, just so that people can have jobs?

Outsourcing is a reasonable way of cutting costs because those people are willing to work for the lower wages. If you don't want to lose your job, perform better and work for cheaper.


I agree, outsourcing is done primarily for economic reasons, but there are American outsourcing options that are competitively priced with offshore companies.


There would be no Wal mart! Wal-Mart creates more jobs probably by outsourcing and paying americans to run the store.

Instead of paying us low wages to assemble and sew, we can be paid a little more and sell the products, not that making a product in america is bad either, but it's a gentle give and take. I do think companies should be taxed a bit more for it to keep its base in america and send its production over seas just to be brought back here and sold. But think of how much harder it would be for some people to survive without a place like wal-mart.

It might not be the best of everything, but people who couldn't afford those things, makes it easier to have so we all can like in a social norm.


Have any of you people who think outsourcing is "evil" actually done any homework on the effects of outsourcing?

I don't want to get into a tutorial of economics 101, but outsourcing is necessary and not done out of greed. Businesses outsource those functions that can be done cheaper and better by those who specialize in it. Remember if the quality is not there, the outsourced function will cost the company more in the end and will therefore not be a viable solution. And not all outsourcing is overseas outsourcing.

However, if something can be done better overseas and you are upset about it, then do it better here, don't whine like a child and force our American companies to pay the price of efficiency because you can't figure out how to pay your bills.


The other day I had a software issue. I had to contact Mcafee, Norton, Hewlett Packard and Microsoft. All of these companies had outsourced and I had a hard time understanding them. Is it any wonder why our unemployment is so high? These American companies should be ashamed of putting their fellow employees out of a job. Wake up U.S. government and help.


Yeah, With no doubt "outsourcing is a cost-effective way", and it saves your time and work. The problem is, as many people mentioned, how can we rely on outsourcing as "outsourcing often eliminates direct communication between a company and its clients". As more people complain of the call center, no one will use your service any more, which leads outsourcing to be a "cost-ineffective way". Think agencies are required to deal with such problems between a company and its clients. In this way, IT outsource seems perform better than others. Outsourcing platforms provide service and safeguard for both companies and clients.


Outsourcing is nothing more than the ugly face of corporate greed in America!


We have the same problem right now with all the chicken-manufacturing companies! Corporations such as Tyson and Cargill have been putting pressure on Congress to lift the ban on Chinese chickens because they are building factories in China.

In addition to ongoing problems with China's food safety standards and inspection system, there have been specific problems with Chinese poultry processing facilities, such as filthy and unsanitary conditions. Even worse, China has experienced several outbreaks of the very contagious bird flu that has not only infected poultry but also been fatally transmitted to humans.

Outsourcing hurts Americans! There are plenty of chicken farms in America that would love to have the business but Tyson and Cargill are building plants in China to try and get around the ban!


I am so thoroughly sick of calling one of my service providers and getting first, a phone tree (a machine) and then the machine transfers me to some lunkhead in India. I realize the lunkheads in India are cheaper than the lunkheads in America and companies probably do not have to provide benefits to the lunkheads in India, but the customers are suffering due to your cheap choice, corporate America! American citizens who are currently out of work would love to have that job you gave to a machine or any one of those jobs you gave away to India! Start doing the right thing corporate America and support your own country for a change, you cheap creeps!


Its un-american not to support americans when you are an american, think about it! Shipping jobs over seas is the same as cutting your own wrists. it's a slow death!


What other reasons would you outsource other than saving money?


I think that outsourcing is ridiculous. Just because some greedy CEO wants to take away jobs from americans and give it to a person from a country they probably haven't been to so they can buy a mansion or somthing is just wrong.


i cannot read the text in gray (or white). it almost looks blank. try dimink/chris purcell. he can take your site to another dimension.


Considering IT is next big push for "outsourcing" it may be time for the "brains" to join up with the "brawn" before the United States becomes the next 3rd world country. There will be no jobs hence no money. I wonder what India will purchase from the US? Maybe we can make cheap knives. Hey and anon10195 perhaps you don't understand. No jobs = no money. We call can't go on DHSH.


outsourcing may be good. how are people supposed to buy products made outside the USA if they do *not* have work, thus, no money to buy? by the way, the quality from outsources is terrible, as terrible can be.


Outsourcing is awful!


I am torn.

I believe the way it should be is that we are a world market; all humans after all. We all need food on our tables.

We need to not go to the lowest bidder *if* their country doesn't have minimum wage and workers' rights.

When did we start seeing people as costs and not assets? When did business, business, business take over??


I work in a call center in California for a big health company. They are outsourcing the vendor calls we get. The vendor calls are usually out sourced jobs and now the people who are taking their calls are outsourced also.

What really bothers me is a lot of the people who are outosurced are rude and do not understand English. And I see the work that comes back and it is done incorrectly. It is a joke!!


As it says: A sword has two blades. Outsourcing has its own pros and cons. But still there's many corporations that benefit a lot from outsourcing service. A good and reliable outsourcing company can reduce risks and save costs for clients. Like our company, I could say once a customer adopts our service, it's just the beginning of a 15-year relationship at least. We're not driven by mere interest at all, but to our customers' satisfaction.

As for the unemployment, I'm wondering why those Hollywood stars have so much wealth that they cannot even squander up. Maybe disparity is around everywhere. And there's always a way forward to solve any problems.


I think outsourcing is a great thing for everyone involved. I got my career started by outsourced projects on a website that helps freelancers find jobs and have not looked back.

Outsourcing, especially via such websites allows people from the world over to make good money while having the flexibility of a freelancer.



People in third world countries not only support to increase your fortune in buying your stuff but they also give happiness to families in giving children to be Manila, India, etc.

I think Outsourcing is good, because it will reduce cost...Companies from anywhere will benefit from Outsourcing. Companies from Europe as well as from America = from Canada, Mexico to the end of the American continent Argentina.


We run a small Business Process Outsourcing company in Davao City, Philippines. It's an exciting industry that continues to grow as the world goes through the financial crisis. The future for outsourcing worldwide is strong.


Business Process Outsourcing needs to be carefully undertaken. Credibility of the outsourced company is to be considered. People do deliver, but it is after all a matter of understanding, efficiency and effective communication, which finally delivers the results.


Outsourcing makes sense, if you are looking for the citizens of this country to die!! The better solution, in my opinion, is to make *everything* more affordable. Yes, that means prices will have to come down on everything we buy. Of course, that will mean that wages will also have to reflect that downturn. But, if we use our parents and grandparents for examples, they were able to live on lower wages, because everything cost so much less. My mom told me that it cost a nickel to go to the movies. And back then they could see 2 or 3 movies!! I believe the dollar was worth a dollar back then.

I'm sorry, but I think this country is in a world of hurt. We allow foreigners to enter this country, *and they don't have to pay taxes for a certain number of years.* This is *our country*. *We have to pay taxes. Does this make sense to anybody?* It certainly doesn't to me.

What do you think?


Companies like Dell, who outsourced like crazy, recently moved many of those jobs back to the U.S. precisely because their quality suffered from it. Capitalism allows people to vote with their dollars, and vote they did.

Yes, workers in impoverished countries get crummy wages making sneakers for U.S. companies... as opposed to *no* wages and starving to death. It is a human rights issue worth working on, but cutting their means of making money is not the answer.

Try this on for size: Americans are now starting to go abroad to countries like India for big operations, because they get advanced, quality healthcare for 1/10th the cost. Google "Lower costs lure U.S. patients abroad for treatment."

Ain't capitalism grand?


I think outsourcing is bad, I mean, why send all of our jobs to foreign countries when we're suffering from unemployment? Maybe if we kept our jobs in the good old U.S. of A, we would have less unemployed people, have to pay less welfare, and maybe that would make us come out of the economic problems we're having!!


Hello, one question - When a project is outsourced who should manage the project - the internal group or the outsourcer? Why?




I think Outsourcing totally sucks and the only reason a company does it is to save money. Instead of paying someone here in the US 34,000 a year to do A/R, its cheaper to ship it off to Manila and pay someone 6,000 a year. *And* they screw everything up. I have canceled credit cards, cable, Ebay, Paypal, etc because their customer service is in another country. *Hello*! I have never once solved an issue that I've had so I settled it by canceling it.

I called Dell to buy a laptop and the person on the other end was in India. Click - sorry no sale from me. Countless other Americans feel the same way that I do. How dare you ship our jobs overseas.....we are suppose to take care of each other here in America. Not people in third world countries.

I pray every night that the president will stop this. This is what's killing our country. Please stop outsourcing!!!! Please!!!


Excellent post...

Outsourcing will reduce cost and increase quality....

Regards, SBL


Outsourcing your IT services can be extremely beneficial to a company. Companies will outsource for different reasons. Outsourcing is generally lower costing than hiring and training people for an in-house IT department; the company might have limited resources. Also outsourcing companies are very specialized and have more knowledge about the industry. As for the olittlewood post: quality outsourcing companies will be wary about who they hire and the impact it has on company-client interactions. Outsourcing can be a beneficial tool for businesses in the short term and long term. Short term it allows them to cost cut; long term it allows for the company to focus on core business functions.

Hope this helps!


Hello IAA members and you who you are reading now!!..what are the circumstances that could lead a firm to outsource its IT functions rather than continue with Internal Information system units?


I'm a student at the Institute of Accountancy Arusha (IAA)-Tanzania, I would like to know if outsourcing is important in achievement of long term plans of an organization then why not for most organization who are not using IT outsourcing start using it? And do you thing you guys that the world will do without outsourcing?


Hello guys...Please, in your own opinions, what do you think are the issues involving the procurement of an Information System? Also, what are the financial considerations in IS outsourcing? Thank you.


Is it possible for the US to completely stop outsourcing of work to India and do it themselves?


Everyone's experience is different on outsourcing, but there is always a negative to a positive and vise versa.

Outsourcing should not be used if one is trying to just save money, but because it makes sense in the long term process of becoming successful in ones project or daily task.

Thus before outsourcing one should consider to create a formula that proves that outsourcing is a long term benefit than short term. So it is not just the cost one should consider, but who they outsource the work to.

In our company we are trying to create innovative ways to achieve the success of individuals and small businesses. Thus if you are not in this circle, than your outsourcing formula should prove that outsourcing to our company is not for you.

Remember this is just a one scenario and one should consider their own variables prior to choosing to outsource or not.


Outsourcing is also now being interchanged with the word offshoring, when in fact that shouldn't be the case. When you say you'll outsource something that means you will have a role or task done outside your company, it can be within your country or outside. When you say offshoring, it is outsourcing something outside your country.


Outsourcing is a trend that is becoming more common in information technology and other industries for services that have usually been regarded as intrinsic to managing a business.



I agree with anon13668! These days money is more important than the individual, and the bosses of a company still wonder why they are running a company almost as expensive as another which uses no outsourcing?

Outsourcing is great for someone to get to know the job in a matter of 2 weeks to 3 months, depending on the intensity of the job; but people get fed up with companies thinking things are going by using outsourcing for years and years! People aren't dumb!


Outsourcing is a short term profit maker. Eventually, people will get fed up with poor customer service and seek out companies that actually care about long term relationships with their customers.


Outsourcing may prove highly beneficial for many companies. This is very much true, but many people do not understand this.


What does outsourcing mean in the short run?


Who was US president when US started outsourcing?



nothing is more annoying than calling and getting someone who is hard to communicate with. although i have to say that sometimes, native english speakers can be just as difficult sometimes. i remember when customer service was such a big deal with companies. they actually took pride in providing excellent customer service. now, everyone wants everything so cheap, this is what we as customers have to give up. i guess you can't have it both ways!


I have a question based on payroll...How is the payroll process with outsourcing? I'm currently working as an outsource cutter for a company and when it comes to payday it's mayhem! I always get excuses that I have to wait weeks. They said I'd get paid bi weekly by mail and it's been a month and I've only gotten one check from the company. Is this process credible? or are they just taking their time to pay me? I'd like to know because I'd like to get paid for my work, if not I can move on.



How many newspapers use call centers?

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