Outsourcing is an arrangement in which one company provides services to other companies, which can also be or usually provided in-house. Outsourcing is a trend that is becoming more common in the field of information technology and other industries for services that are generally regarded as inherent in business management.
Outsourcing also has several disadvantages. Conclusion of agreements with other companies can take some time and extra effort on the legal team of the company. Security threat arises, if the other person has access to confidential company information, and then the party suffering from these disorders. It may occur lack of communication between the company and the outsourcing provider that could delay the completion of projects.
Outsourcing can range from a major contract in which a company like IBM to manage the company’s IT services, as Xerox to the practice of hiring contractors and temporary staff of the Bureau on an individual basis.
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