Glossary

The most comprehensive list of business process outsourcing related terms and definition.

Outsourcing

Definition

About outsourcing

Outsourcing is the process of leasing skilled resources from third-party providers. It usually involves availing of services or manufacturing of products. In effect, there’s no employer-employee relationship between the availing company and the staff leased.

The employees’ salary and benefits are paid by the outsourcing company and the client gets billed on a monthly basis. The amount charged is usually a computation of seat/management fee plus salary (passed-thru cost). Seat and management fee varies depending on the company and role being outsourced.

Outsourcing business

Outsourced roles are often back-office related jobs. These jobs don’t require specialized knowledge or specific skills, primarily outsourcing refers to service-oriented ones such as customer support or email support. However, some outsourced position may require specialized skills that the service providers have mastered and developed.

Outsourcing brings a lot of advantages to businesses, primarily being the cost involved. When a business needs a new set of skills, hiring a new employee inhouse maybe more expensive than hiring someone from a service provider.

Outsource Accelerator specializes in helping small & medium-sized enterprises (SMEs), with 2-500 employees, typically based in the high-cost English-speaking world. We are the experts in transforming these businesses with outsourcing.

Outsourcing

Outsourcing

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