OUTSOURCING

ABSTRACT
Outsourcing is often viewed as involving the contracting out of a business function - commonly one previously performed in-house - to an external provider. In this sense, two organizations may enter into a contractual agreement involving an exchange of services and payments. In addition, several related terms have emerged to grasp various aspects of the complex relationship between economic organizations or networks, such as near shoring, multisourcing and strategic outsourcing. One common area where this business model thrives is in provided website creating, analysis and marketing services. All elements can be done remotely and delivered digitally and service providers can leverage the scale and economy of outsourcing to deliver high value services at vastly reduced end customer prices. KEY : Outsourcing, types

INTRODUCTION
Outsourcing is any task, operation, job or process that could be performed by employees within your company, but is instead contracted to a third party for a significant period of time. The most common model of outsourcing that is in the news today refers to jobs that are being sent overseas to countries like India or China. This is more commonly called offshoring. Examples include telephone call centers, tech-support and computer programming.

ADVANTAGES OF OUTSOURCING
improved service and performance; expert resources and staffing; shorter systems development cycles; better management control; elimination of personnel problems; stabilized or reduced costs; improved business focus Good quality work. On time delivery of services.

BUSINESS PROCESS OUTSOURCING

Business Process Outsourcing refers to the rearrangement of entire business functions to some other service providers, mainly in low cost locations. The service provider may be either self-owned or a third party. BPO (Business Process Outsourcing) involves business process management and outsourcing. Business process management uses technology aimed at redesigning the process, reduce unnecessary steps, and remove redundancies. On the other hand outsourcing uses expertise and resources of dedicated outside service providers to perform many of these vital yet non-core activities. BPO performs both the functions at the same time, thereby speeding implementation and ensuring that the intended benefits really hit the bottom line.

BENEFITS OF BPO
Productivity Improvement Companies that outsource their business processes are often able to capture new efficiencies and in the process improve upon their productivity. They are in a better position to reallocate their resources to other important projects. This also helps their employees to increase their efficiency and productivity. Cost Savings One of the most important benefits and advantages of outsourcing the business processes is in terms of cost savings. The companies that outsource their work have the access to the best of talent and expertise in the BPO field and that too at very low wages. Improved HR Improved HR is another great advantage of outsourcing business processes. Several market studies have shown that HR outsourcing can lead to cost savings in the range of 20-40 percent for customers. It also leads to improved HR. Focus on Core Business Business Process Outsourcing gives tremendous help to the companies to concentrate more on the core areas of their business. The most important factor behind the growth in the BPO market world wide today is an increase in the number of enterprises that are reviewing their internal operations in an attempt to fully understand their true core competencies. In the process they are able to focus more on their core competencies. Increase in Capabilities Apart from other advantages, business process outsourcing has another big advantage which leads to increase in capabilities of the employees and the company. With this know-how increased capabilities can be seen.

KNOWLEDGE PROCESS OUTSOURCING

Knowledge Process Outsourcing (KPO) involves the transfer of Knowledge Intensive Business Processes that require Significant Domain Expertise, to other geographic locations. In simpler terms, it is the transformation of large chunks of data into useful information that may be used in decision making. Since, knowledge is the most important factor and the end result is based on judgment there may not be a pre-defined process to reach a conclusion. The following are the few areas which are being associated with the KPO sector. Research & Development Medical Services Business & Market Research Data Analytics Network Management Training & Consultancy

BENEFITS OF KPO
o Standard operational efficiency. o Trained and experienced professionals at work. o Time savings and savings of management energy for maintaining in-house services. o Increase in profits. o Option to recruit a larger work force without raising costs. o Cost savings which can be utilized elsewhere.

INFORMATION TECHNOLOGY OUTSOURCING

Information Technology Outsourcing or ITO is a company's outsourcing of computer or Internet related work, such as programming, to other companies. It is used in reference to Business Process Outsourcing or BPO, which is the outsourcing of the work that does not require much of technical skills.

BENEFITS
Reduced capital expense: One has to arrange for capital for not only purchasing the hardware and infrastructure, but maintaining and updating them as well. The cost of internally managing IT infrastructure is enormous. The cost for a small and medium enterprise to purchase, run, and maintain even a fraction of such an infrastructure can be just as expensive, relative to the size of the business. Expert support: Getting an expert to maintain servers is often difficult since not all enterprises specialize in them. Most of the times servers are not set up in a standard manner and the lack of expert personnel to manage it may mean a reduction in reliability and the ability to recover from failure. Reduced cost: Outsourcing enables cost reduction in terms of maintenance, cost on personnel training, etc. Quicker deployment and ability to upgrade: For most companies, designing, procuring, and implementing IT equipment and systems can consume a significant amount of time and effort. Many service providers can implement new projects in a short timeframe often within 24 hours from the time of order. Reduced personnel requirements and expertise: Maintaining IT infrastructure is not an easy task. It requires the right kind of personnel to maintain them. There is cost involved in training employees to efficiently install and maintain the IT infrastructure. Higher reliability and performance: Housing infrastructure with a service provider who specializes in such equipment can offer higher performance and reliability compared to an enterprise handling the infrastructure on its own. Focus on Core Competency: While companies understand and know the application they need, they may not be an expert in server technology and maintenance.

LEGAL PROCESS OUTSOURCING

Legal Process Outsourcing (also known as LPO) refers to the practice of a law firm or corporation obtaining legal support services from an outside law firm or legal support services company. When the outsourced entity is based in another country the practice is sometimes called Offshoring.

BENEFITS
Cost: using an offshore Professional Support Lawyer is 30-55% cheaper than using or hiring the services of USA or UK based legal staff Time: Time zone differences work in favour of time bound projects Quality: The Indian intellect and intelligence is know to the world.the same may be applied to the Indian legal brain. Resource accesiblity and elasticity: the ablity to ramp up and down to meet short term requirements without compromising on quality

CONCLUSION
Thus it is concluded that Outsourcing reduces the capital expenses and Manpower employment and thereby reduces the issues relating to human resources. And I suggest that an organization can use outsourcing to some extend and remaining can be done by their own capacity.

REFRENCES
http://en.wikipedia.org/wiki/Outsourcing www.indobase.com http://www.lpoindia.com/Done/LPOIndiaFlyer1.pdf www.marketequations.com http://operationstech.about.com/od/officestaffingandmanagem/a/OutSrc Advantg.htm www.wikipedia.org www.winentrance.com