Before, outsourcing was the preserve of the biggest companies. International companies set up dedicated services that enabled large businesses to have information technology, payroll and other “back-office” functions managed by teams of specialists. However, the internet age has given smaller businesses the opportunity to gain from the concept. Increasing numbers of growing businesses are avoiding employing full-time human resources managers by obtaining advice and services through the internet. Business process outsourcing – the off-shoring of a lot of jobs from the developed countries to the developing world became the main issue of global businesses.
Clearly, from the vantage point of the developing countries, outsourcing was hailed as their way out of poverty, as a slew of outsourcing companies set up in their homelands signified the start of abundant opportunities, rising incomes, and secure futures. Outsourcing is increasingly viewed as a strategic planning and business outcomes tool. The beauty of outsourcing is you can outsource an entire function or only a part of it. Organizations use this as a strategic initiative to improve customer service quality and reduce costs. Increasing global proficiency in English, rising quality of education in the developed countries, significant improvements in telecommunications and information technology – all have contributed to making the phenomenon known as outsourcing possible.
The trend toward deriving broader business benefits from outsourcing stems from both increased maturity and experience with the process and, the spread of outsourcing beyond IT departments. While IT services continues to be the leading outsourced function, more companies are turning to outside sources for supply-chain operations, learning and training, human resources, accounting and financial services as well as customer relationship management.