Outsourcing — Flashcards

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Outsourcing means any task, operation, job, or process that could be performed by employees within a company but is instead contracted to another party for a significant period of time. It can be done…

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Offshoring is the most common model of outsourcing in which jobs are sent overseas to countries like India or China. Common examples include telephone call centers, tech-support, and computer programm…

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Companies use outsourcing mainly to reduce costs and maintain their market position. Outsourcing helps them save money through economies of scale, lower labour costs in other countries, and better use…

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When non-core work is given to outside experts, management gets more time for the company's core business. This allows executives to explore new revenue generation, accelerate projects, and pay more a…

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BPO is the contracting of a specific business task, such as payroll, to a third-party service provider. It is usually done as a cost-saving measure. Example: an insurance company may outsource claims …

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Common BPO work includes call/help centres, medical transcription, billing, payroll processing, data entry, IT services, and human resources functions.

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ITES means Information Technology Enabled Service. The term is used because BPO is close to the IT industry. However, BPO does not mean only IT services; it also includes other business services.

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Back office outsourcing is a category of BPO that includes internal business functions such as billing or purchasing. These jobs mainly support the internal working of the company.