What is Outsource?

Outsource

What does outsource mean?

The contracting of work to third party organizations, anywhere in the world. Outsourcing is becoming a very popular practice since the introduction of the Internet has allowed global communication to prosper. Whereas in the past you may have had to rely on looking local for an expert in your field you can now use anyone anywhere in the world. Outsourcing has affected nearly every aspect of business, from manufacturing, to customer service, to back office staffing.

One of the main advantages of outsourcing is to cut your expenditures. When outsourcing to countries such as India you can find highly trained professionals who are willing to work for a much lower hourly rate of pay than in the Western world. First utilized in the 1980s, outsourcing became increasingly utilized throughout the 1990s and is now fully accepted as a cost-cutting measure used by business of every size, and in nearly every industry.

Outsourcing has been extremely controversial in many Western countries, with those opposed to the practice claiming it is one reason for a loss of domestic jobs, especially when talking about the manufacturing sector. On the other hand, supporters claim that outsourcing creates an incentive for businesses to allocate resources where they are most effective. It has also been claimed that outsourcing has contributed significantly to globalization, and that it supports the free market economy on a global scale.

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