Outsourcing - advantages and disadvantages of outsourcing, outsourcing and Slovakia

Outsourcing became part of the business lexicon during the 1980s. It is a practise that is becoming increasingly popular with today`s businesses and it is universally accepted as an effective strategic business tool. Outsourcing is the delegation of a business process to an external service provider. The service provider will then be responsible for the day-to-day running and maintenance of the delegated process.

Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business. Outsourcing takes many forms. Organizations still hire service providers to handle distinct business processes, such as benefits management. But some organizations outsource whole operations. The most common forms are information technology outsourcing (ITO) and business process outsourcing (BPO). Another business segments typically outsourced include accounting, human resources, cleaning services, facilities and real estate management. Many companies also outsource customer support and call center functions, manufacturing and engineering.