Outsourcing plays a major role in any business nowadays. In this article, you will learn about outsourcing. Its meaning, advantages, and disadvantages also. So, let us start this article now-


Outsourcing is a practice in which businesses hire an external company. That external company will perform services for the business. These are the services that the company performs itself. Now, the companies outsource that service from an outside company. Generally, companies use this practice as a cost-cutting measure. This is the practice of delegating a little control of our services to another company. Business Process Outsourcing (BPOs) are work for the outsourcing of a business task. Sometimes, a company can’t handle all the tasks. The growth rate is so high that they can’t pay attention to each sector. That’s why they outsource the services from a company. These companies will have pre-trained and expert staff. That will help to continue our work without any delay. These outsourcing companies also enhance job opportunities. It includes two types of contracting-

  1. Foreign contracting It means giving the contract to a foreign country. Or to a company outside the national boundary. It includes both offshoring and nearshoring. Offshoring means allocating a business service to a distant country. Nearshoring means allocating a business service to a nearby country.
  2. Domestic Contracting It means giving the contract to a domestic company. A company located within the national boundaries.

We can outsource many services nowadays. A list of such services are as follows-

  • Accounting
  • Marketing
  • Sales
  • IT Management
  • Administrative Tasks
  • Customer or Call center service
  • Manufacturing
  • Shipping and Logistics
  • Research
  • Human Resource
  • and many more.


It is the need to outsource business services to improve efficiency and to cut down the cost. Let us learn about the advantages of Outsourcing deeply-

Advantage of outsourcing
  1. Cost Advantages It is the most obvious and important benefit of outsourcing. With the help of outsourcing, we can save many types of costs. You can complete your work at a low cost but with better quality. For any new project, you have to hire more employees. But if you outsource that project to any external company. It will save your labor cost and recruitment, selection, and training costs also. Also, you need new equipment and technologies for any project. You can also save that cost by outsourcing the service.
  2. Focus on core areas- Outsourcing helps your business to focus on the core areas of their business. You can channelize your time and efforts for other important works. Such as brand building, updating the product, and research work. You can focus on the work in which you have efficiency. You can outsource the work whose resources are not available to you.
  3. Faster and better services Outsourcing companies provide you the assurance of fast and better services. They help you to complete your project in lesser time. They also increase the efficiency of the work done. With the help of their skilled staff and latest equipment.
  4.  Expert and skilled staff You don’t need to invest money in recruiting and selecting an expert. Instead, you can outsource the service and get access to expert and skilled staff. This all you will get without any huge investment. You can take the help of such experts which you can’t even afford. They give you the best advice for the accomplishment and success of your business.
  5.  Risk-sharing- When you delegate your service to an outsourcing company. You will transfer some of your risks as well. Now, if there is any problem then they are responsible for that. There are many such risks. For example- We hire an employee especially for a certain project. But later on, he quits the job. Now the cost of the recruiting and selection process is a waste. But if you outsource your project to another company. You don’t need to hire an expert and save yourself from the employee turnover risks.


  • Do outsource that service or project which you don’t need often. Outsource the project which is temporary but requires expertise and new tools.
  • Do know the type of company you want to work with. You should know your requirements before hiring the outsourcing company.
  • Do complete research before hiring a company to delegate your work. Go through web searches, ads, contact references, social networks. Then choose the right one.
  • Do consider every legal aspect of outsourcing. Do proper documentation of the contract for future reference.
  • Do choose the right partner for your work. To complete your project within time. You and your outsourcer should be compatible with each other.


  • Don’t outsource the work at which you are good. If your company has a strength in some kind of work, then do it yourself.
  • Don’t hire a company that considers your company’s project as a side project. If they think so, then they will not do your work with full dedication.
  • Don’t hire someone who needs a lot of guidance and attention. If you have to micromanage every task you allot to them, then you have to hire the wrong company
  • Don’t continue with a company that is not working with its full capacity for you.Don’t outsource the projects which need sensitive and crucial data of your company.
  • Don’t settle or compromise for less.


This is all about outsourcing. I hope you will understand enough to choose whether to outsource your project or not.