History of Outsourcing
Benefits of Outsourcing
Frequently outsourced tasks
Types of business sectors usually outsourced
Types of business sectors rarely outsourced
Biggest outsourcing companies
Reasons for outsourcing
Outsourcing is an arrangement
in which work is done by
people from outside your
company, usually by a
company which is expert in
that type of work.
History Of Outsourcing
1910-s 1920-s 1930-s 1940-s 1950-s 1960-s 1970-s 1980-s 1990-s 2000-s
growth rate Outsorsing Requirment
• Companies didn’t use outsourcing;
• Manufacturers take product from raw
materials stage through the production
• Goods shipped by their own resources;
• Products delivered to company-owned
• Companies started to outsource some services;
• Independent companies opened to serve multiple clients (architecture,
engineering, insurance etc.);
• Located in cities as the companies they were performing services for.
Late 20th century
• Production of consumer
• By the 1970s consumer
• Once company owners
were confident- they
• Computer companies
• By the end of 1980s
other services started to
• (billing, accounting, and
0 20 40 60 80 100 120 140 160 180
Outsorsing ,$ million
China Canada UK Romania Russia Ukrain USA India
Companies such as call centres are kept busy from a steady stream of
clients looking to outsource these duties.
When a customer calls an insurance company with a question or a
concern, he or she will likely be speaking with someone who is working
for a separate company, even though that person has been trained to
handle customer service duties.
Many people work as independent contractors providing services to
businesses of all sizes.
Outsourcing is a growing trend that is not likely to slow down in the
future. Some individuals may find that they are laid off from the
company they work for, and are then hired back to that some company
as a contractor!
Benefits of outsourcing
/State of the
Disadvantages of outsourcing
Frequently outsourced tasks
Companies are looking for ways to streamline their operations
Types of business sectors using
Public Services and
Travel / Transport
Insurance Health Care
Types of business sectors
Any company at least once use outsourcing services
Small trade shop
Start up business
Top 10 companies, along with the number of outsourced jobs:
Business type: IT services Consulting
Project: Description of processes in large company and create
auto documentation based on created process in short time
Outsource: Script developer
In project: Create script-report
Reasons: Company had no sufficient number of experts for
project implementation in periods
Minus: lost management control under outsourcer, additional
requirements have added cost
Outsourcing is often portrayed negatively in the media.
There is no doubt some people are hurt by outsourcing.
The outsourcing theory, however, is intended to be
positive, especially in the long term, as it allows
companies and people to focus on what they do best.
When was outsourcing developed?
What kinds of disadvatages of outsourcing do you
Give 3 Reasons for outsourcing.
Which company outsourced the highest amount of
Are all business sectors outsourced?