Outsourcing is the act of repeatedly assigning part of a business process to a third party. It differs but is similar to Suitable Employment and Subcontracting.
The outsourcing process has the aspect of employing a third party to perform an assigned task without the “labor law” responsibilities. This third party may be within the same country as you or from a country thousands or tens of thousands of miles away from you. With this, you can easily end your relationship with said party without the immediate legal precautions of “employment laws” if they don’t meet your standards. If they meet your standards or you are satisfied with their performance, you can rehire them to perform another assigned task, preferably of a similar nature.
The outsourcing process allows you to enjoy having a reliable “regular employee” without the hassle of responding to the limits and rules set by “labor laws”. You can continually assign tasks to this third party and expect results from them as you would expect from one of your regular employees. However, if you feel that they cannot perform their assigned tasks and meet your standards, you can easily end your relationship with them.
Outsourcing can be simply defined as the ongoing outsourcing of a specific part of your business process.
If you assign a specific task to a third party, but do not use it correctly, it is called a task assignment. If you continually outsource a specific part of your business process, it will now be called outsourcing.
But why should you outsource?
In most cases, the goal of outsourcing is to reduce costs, but this is not always the case. Most companies outsource to find a cheaper source of labor and get the results they want, just as they would have done if they had to hire properly. They may offer smaller benefits, compensation packages, or cheaper deals, but still get the same or sometimes better results.
Outsourcing is also used if a certain company or individual has the inability to perform a specific task and get the result they want. These companies resort to outsourcing to find a person or a company that can give better results than if they did the same task. The cost may be a bit higher, but the results are better.
Therefore, outsourcing has two main objectives:
1. Get labor at a reduced cost but get the same or slightly better results.
2. To get better results for the same or slightly higher cost.
