What Is Outsourcing

Companies regularly examine their infrastructure and look at ways to save costs and improve efficiency. Common functions that are outsourced in larger companies are IT and call centres, and manufacturers often outsource delivery and logistics, cleaning and maintenance functions.,

Smaller companies often outsource payroll, book-keeping, cleaning, IT, telecommunications, equipment servicing and other services where employing resources cannot be justified due to the small volume of work.

Once a decision has been made to outsource a service, the company will look at potential providers and give them a scope of work. The provider will quote, usually a fixed monthly fee, for the work defined in the scope and then the company will decide on a provider and engage them to perform the work.