Outsourcing - Categories

Outsourcing can be primarily classified into two broad categories namely, Technology Services Outsourcing and Business Process Outsourcing.

Technology Services Outsourcing:

The term “Technology Services Outsourcing” is self-explanatory of the industries and/or services it comprehends. These include telecommunications, software development, infrastructure, website development & hosting and eCommerce to name a few. The need to outsource technology by the companies has arisen, to face and withstand the tough challenges thrown by their competitors in the present market. Therefore selection and implementation of the accurate and adaptable technology has become mandatory for the firms thereby increasing the demand for this particular outsourcing.

Business Process Outsourcing:

The term "BPO" (Business Process Outsourcing") which makes sense to a layman today is only a decade and a half old that walked its first steps in about 1995. The emergence of BPO was a dramatic but stabilized process catalyzed by two main factors: competition among enterprises to reach the pinnacle in economical sector without much investment in either workforce or infrastructure and internet that made an everlasting entry making life easier for common man. Moreover BPO services can be further classified as front office or back office depending on the functions dealt. Customer oriented work such as marketing, answering calls, technical support etc fall under front office services and internal work comprising of billing and purchase fall under back office category. Unlike technology services outsourcing, BPO covers a very broad set of sectors including multimedia/ animation, book keeping, business consultancy, CAD/ CAM, call center, DTP, data entry, proof reading and editing, typesetting, handwriting services, marketing, medical billing and transcription etc.

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