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Essay / Outsourcing and Third Party Companies - 2026
Outsourcing involves a company contracting with another company to provide products or services that could otherwise be produced in-house. The third party contracted company takes control of the work and is responsible for the success of the assigned work. Many organizations today outsource services such as email, payroll, and customer service call center services. A company contracts with a company that specializes in producing or providing a given service, and in many cases the company is located overseas. After reviewing what outsourcing is about, it is important to note that: A company outsources work that it considers not to be the company's core business. For example, an insurance company subcontracts its landscaping operations to expert companies specializing in this profession. Service providers where jobs are outsourced are called third parties (Sourcingmag.com 2011). To help an organization make an outsourcing decision, it should ask itself the following questions: After outsourcing, will the company be free to focus on its core business? Will business efficiency be achieved when the organization outsources? Will outsourcing help the company gain a competitive position? Among other strategic concerns (Crown 2011). Outsourcing takes place in different companies and the most common ones include information technology outsourcing (ITO), business process outsourcing (BPO), which encompasses human resource outsourcing (HRO). ITO is where a commercial company outsources information technology services to a third-party company. BPO encompasses HRO which involves outsourcing customer service call center services to a third party instead of doing it alone. Companies exit...... middle of paper ......bm.com/press/au/en/pressrelease/28347.wssMDF Systems, 2004. 32 Benefits of Outsourcing. Retrieved from: http://www.mdfsystems.com/artman/publish/article_19.shtmlOnwards Vortex Centrum Limited and group companies, 2011. Outsourcing: Qantas in seven years dealing with IBM. Retrieved from: http://chiefofficers.netQantas Airways Limited, 2011. Our company. Retrieved from: http://www.qantas.com.au/travel/airlines/history/global/enQuinStreet Inc., 2011. IBM puts Qantas' IT business in its pocket. Retrieved from: http://www.internetnews. com/xSP/article.php/3354841/IBM-Puts-Qantas-IT-Business-in-its-Pouch.htmSourcingmag.com, 2011. Outsourcing – What is Outsourcing? Retrieved from: http://www.sourcingmag.com /content/what_is_outsourcing.aspUBM TechWeb, 2011. Airline taps IBM for flexible pricing deal. Retrieved from: http://www.informationweek.com/news/20900330