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Types of Outsourcing

Definition: Outsourcing is the process of hiring people outside a company to create goods or perform some form of service. There are four types of outsourcing:


1. Professional Outsourcing: Professional outsourcing includes accounting, legal, purchasing, and administrative jobs. This type of outsourcing helps entrepreneurs and companies avail high-quality services at affordable costs.

2. IT Outsourcing: IT outsourcing involves subcontracting IT development tasks to a third-party. This includes anything from software development to support and maintenance.

3. Manufacturing Outsourcing: Manufacturing outsourcing involves hiring a third-party manufacturer to produce physical goods and offer services on behalf of your company. It’s commonly performed to save on production costs.

4. Project Outsourcing: Project outsourcing concerns hiring project management companies to help entrepreneurs or organizations with large projects or even a portion of a particular project. This saves costs that go into hiring an in-house team with the necessary skills.