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What is outsourcing?

Outsourcing is a business practice in which an organization hires a third party to perform some tasks, handle operations, or offer assistance for the organization. The outside organization is known as a third-party provider, they set up their employees and systems to perform the services or tasks either onsite at the hiring organization’s facilities or external locations.


A company can outsource different tasks or services, they often outsource IT services including programming, application developments well technical support. They can also outsource customer service and call center service functions.

The main advantage of outsourcing is used by businesses to reduce costs and increase efficiency. Companies who have elected to outsource based on the experience of a third-party supplier in performing the outsourced duties can benefit from this.

Types of Outsourcing

There are several ways to outsource your business depending on the process, one may be preferable over another. Different types of outsourcing are:

  1. Onshoring

Migrating work or services to a lower-cost location in the company’s own country

  1. Offshoring

Migrating work or services to third-party service providers

  1. Nearshoring

Migrating work or services to individuals in adjacent, offer bordering region and countries.

Benefits of Outsourcing
You get more Experts

Many companies also choose to outsource, because it allows them to access expertise that they don’t have. Companies can considerably increase performance by outsourcing specialized jobs and relying on the niche talents of experts in specific sectors.

Outsourcing service in Canada


Able to focus on what matters

Another benefit of outsourcing tasks to a third party is enhanced freedom. Bypassing your supporting processes, you will have the option to focus your skills on strengthening and improving the core processes that make your business stick.

Share some risk

The most important factor in a project is the risk assessment and analysis. By outsourcing certain processes to experts in their specific field. You will get benefit from their ability to plan and mitigate potential risks.

Access to a larger talent pool

When hiring an employee, you may have only access to a small talent pool. This means you have to compromise. Outsourcing gives companies to access talent in different parts of the world. If you want specific assistance, it makes sense to expand your search.

benefits of outsourcing

Save on infrastructure and technology

Outsourcing reduces infrastructure costs because the outsourcing partner is responsible for the business process and develops the infrastructure needed.

You get peace of mind

Outsourcing with a reliable agency or individual should give you peace of mind that tasks are handled professionally or efficiently without you having to worry.

Most commonly outsourced streams include:

Information Technology – Customer service – web development and design – Accounting and back-office – Recruitment -Content development – Logistics and Manufacturing