Outsourcing In Business Research Paper Example | Topics and Well Written Essays - 750 words

Outsourcing In Business - Research Paper Example The professional services industry, consisting of accountants, lawyers, advertisers, consultants, and the like is based on the concept of outsourcing. Even works such as cleaning, food services, and mailrooms are outsourced. Outsourcing through call centers have become the order of the day. In recent times, organizations have started outsourcing active back-office jobs, performing work as diversified as customer order processing, payroll, accounts receivables, and amounts payable through outside specialists. In fact, in the modern world, it would be difficult to find any organization that is doing every part of its operations by itself. Through outsourcing, companies try to cut down the operational costs of the product in order to bring down the operation cost. At the same time, outsourcing is resorted to bringing about more product innovation and efficiency in the service offerings to the customers. In fact, there are huge incentives to outsource. Outsourcing can reduce costs by almost 50-60%. There are huge opportunities for the companies to outsource. According to a report by IBM, the leading consulting firm, almost 50% of the $19 trillion expended by European firms on sales and administration could be gainfully outsourced. The report has further added that merely 8% had started outsourcing by early 2005. Peter Drucker, the legendary management consultant and self-proclaimed ‘social ecologist’ observe, â€Å"Do what you do best and outsource the rest.† The idea of finding people who can do something better, faster and cheaper than other dates back to the theory propounded by the classical econ omist Adam Smith.