Aids to trade facilitate the trade process through activities like transportation, marketing, banking, and insurance. Outsourcing involves contracting work out to external companies. It started in the 1700s and companies like American Express and GE helped start outsourcing to India. Companies outsource to save costs, improve efficiency, and focus on core functions. While outsourcing risks loss of control and hidden costs, it provides access to experts, speeds up work, and reduces risk. Large tech companies like Google, Alibaba, WhatsApp, and Apple extensively use outsourcing.

1.  Business Studies
Project
Aids to Trade
Outsourcing
The Work

2. AIDS TO TRADE
 Aids to trade can be defined as the activities which facilitates
trade process such as transportation, marketing, banking,
insurance etc …
 • These activities help in removing various hindrances which
arises in connection with production and distribution of goods.
Transportation helps in movement of goods, marketing
gives information of new products, insurance helps in covering
the risk, banking helps in providing financial assistance for
various firms.

3. MEANING OF OUTSOURCING OF WORK
Outsourcing is a practice in which an individual or
company performs tasks, provides services or
manufactures products for another company
functions that could have been or is usually done
in-house. Outsourcing is typically used by
companies to save costs.

4. HISTORY OF OUTSOURCING IN INDIA
 The idea of outsourcing is not new. It started way back in the 1700s
when manufacturers started shifting the manufacture of goods to
countries with cheaper labor during the Industrial Revolution
 One can accredit the onset of outsourcing industry in India to
companies like American Express and General Electric
 It was also where Raman Roy, one of the pioneers of BPO industry
in India started his work. Thus, along with Amex in the initial stage,
some global airlines started outsourcing their back office work to
India

5. INFORMATION ABOUT OUTSOURCING
Outsourcing is a common trend in information
technology and other industries.
• Products, such as computer parts,
and services, such as payroll and bookkeeping, can be
outsourced.
Sometimes, the entire information management of a
company is outsourced, including planning and business
analysis as well as the installation, management, and
servicing of the network and workstations

6. REASONS FOR OUTSOURCING
 In addition to saving on overhead and labour
costs, the reasons companies employ
outsourcing include improved efficiency, greater
productivity and the opportunity to focus on core
products and functions of the business.
Furthermore, more companies are looking to
outsourcing providers as innovation centres

7. EXAMPLES OF OUTSOURCING COMPANIES
• Google
• Alibaba
• WhatsApp
• Skype
• Slack
• Opera
• Apple
Google
Alibaba
Apple
Slack
Opera

8. GOOGLE
Google is a technology company – that is, its strength and the heart of its business.
They are one of the major companies that outsource and have been outsourcing non-
core functions like admin and IT work for years.
However, Google also understands that even with its size, it cannot do it all. To that
end, they have also been outsourcing development work
Google understood that size is irrelevant when it comes to outsourcing. By
understanding what work can be outsourced and what work needs to stay inhouse,
Google was able to maximize its budget utilization.

9. ALIBABA
 When talking about online eCommerce firms, several names come to mind. You
have Amazon and eBay, of course, but a company that has quickly come to the fore
is Alibaba.
 Alibaba is another example of companies that outsource, but unlike Amazon and
eBay, Alibaba is based in China, which makes the challenges of outsourcing
somewhat different.
 Alibaba understood that while they could keep their manufacturing and resource
costs low locally, the skills they needed to grow were not available at scale in their
region.
 By knowing what skills were lacking in their region, Alibaba was quickly able to find
resources elsewhere able to accomplish the tasks they needed to get done.

10. WHATSAPP
 WhatsApp is a well-known name when it comes to communication. It’s being used
globally by millions and has recently started making forays into online payments
to benefit customers further’
 When thinking about companies that outsource, WhatsApp is a good example of
outsourcing as it has been doing it from the very beginning. As early as 2012,
WhatsApp was a small organization with only 30 full-time employees and five part-
timers.
 The WhatsApp team understood that geography should not be a boundary. To that
end, they identified what they needed to grow and then looked globally for where
they could gain access to those skills cost-effectively.

11. SKYPE
 Skype was a precursor and leader in the online video field. With software clients
that work across smartphones and PCs almost everyone has used or knows what
skype is.
 Skype is another major company that outsources, and they picked Estonia (East
Europe) as a source of talent and brought on several developers to work on the
product.
 Skype demonstrates a similar experience to WhatsApp example with focus on
finding talent globally. Both organizations have shown that the most critical
requirement is the skills available and not just their geography.

12. SLACK
 Slack has revolutionized the way companies work and changed collaboration as we
know it. In many cases, Slack has perhaps done too much to improve
communication as employees sitting beside each other will often just slack each
other instead of conversing in person!
 Started in 2013, Slack has quickly become the defacto standard within high tech
organizations for internal communication
 In Slack’s outsourcing example team understood that design elements and product
beta testing were beyond their skillset. They knew that, like any good author,
editing your own work is often the most laborious and challenging task. By using a
trustworthy third party, Slack was able to gain valuable insight into what worked
from a customer’s point of view.

13. OPERA
 The browser wars between Internet Explorer, Firefox, Chrome, and Opera were
hard-fought. Internet Explorer is no longer relevant with Microsoft’s move to Edge,
and while Firefox is still around its market share is stagnant. Opera, however, has
had some fervent fans for many years, and for a good reason.
 As an extremely lightweight web browser, Opera is straightforward to use and
continues to offer cutting edge features that users need.
 While initial funding for Opera was provided by its parent company when Opera
became its own entity, resources were limited. Understanding these limitations
was a critical decision as it helped influence Opera’s use of outsourced
development resources.

14. APPLE
 When discussing revolutionary technology companies, Apple’s
name needs to be at the top of everyone’s list.
 Currently valued at over $1.3 trillion, Apple is nothing if not
innovative, and millions of consumers swear by its products
and ecosystem.
 Apple barely does its own manufacturing work, yet profits are
consistently skyrocketing. They outsource most of the labor-
intensive work to China and numerous other countries around
the world to save up on production time

15. MERIT OF OUTSOURCING
1.You Get More Experts
 Your core team might be fantastic at a few things, but nobody is
perfect at everything. By outsourcing particular tasks, companies
are often able to substantially improve performance by drawing on
the niche skills of experts in certain fields.
2.Things Get Done Fast
 One of the top reasons small businesses tend to outsource work is
because it will get done quicker. If you’re working with a limited
number of staff members, you can get things done a whole lot
quicker by passing time-consuming tasks on to freelancers or
external agencies.

16. MERIT OF OUTSOURCING
3.You’re Able to Focus on What Matters
 Another benefit of outsourcing tasks is enhanced freedom. By
passing on supporting processes, you’ll be able to concentrate your
skills on strengthening and improving the core processes that help
make your business tick.
4.You Can Share Some Risk
 One of the most important factors in any project is risk assessment
and analysis. By outsourcing certain campaigns or processes on to
experts in their respective fields, you will benefit from their
enhanced ability to plan and mitigate potential risks.

17. MERIT OF OUTSOURCING
5.You Can Reduce Costs
 As one might imagine, outsourcing piecemeal work is almost always
going to be cheaper than hiring permanent full time staff. Not only
will you save time and money on recruitment, but your profit will
also be extended than s to shorter overheads.
6.You Can Simplify Project Management
 If you choose to outsource work via a wide range of specialist
freelance websites and online services, you’re often provided
dynamic and intuitive platforms that will help you to effectively
manage what’s being done, when it’s due for submission and how it
will be paid

18. MERIT OF OUTSOURCING
7.Efforts Are More Targeted
 Another overlooked advantage of outsourcing is that it enables you
to plan and execute more effective, targeted campaigns and
projects that you wouldn’t ordinarily be able to take on. This gives
your business the chance to take new risks and experiment with
different methods of exposure.
8.You Get Peace of Mind
 At the end of the day, choosing to outsource with a reliable
individual or agency should give you peace of mind that tasks are
being handled expertly and efficiently without you having to worry
or lift a finger. What could be better?

19. DEMERIT OF OUTSOURCING
1.You Lose Some Control
 As you might expect, when you farm work out to external agencies or
freelancers, you’re losing control of how those tasks are being monitored
and performed. So long as you know and trust who you’ve hired, that
shouldn’t be a huge issue – but you’ve got to tread carefully.
2.There are Hidden Costs
 Although outsourcing work is generally considered cheaper, yo must also
beware of getting ripped off. Outsourcing companies or big agencies will
typically ask small business owners to sign lengthy contractual
agreements, and they’ll include plenty of fine print. If you don’t read the
terms carefully, you could get hit with unexpected costs.

20. DEMERIT OF OUTSOURCING
3.There are Security Risks
 In this age of data protection, it’s essential that you exercise caution
whenever using customer data. If you plan to outsource processes that
require personal data, you could be placing the privacy of others or security
of your business at risk by passing that data on to other people.
4.You Share Financial Burdens
 Although it can be nice to bring in expert agencies to share in risks, it can
be pretty dangerous to tie your business to the financial well-being of
another company. Again, you’ve got to spell out any and all terms and
conditions in contractual arrangements plainly – because you don’t want to
take a financial hit if they fail to deliver.

21. DEMERIT OF OUTSOURCING
5.You Risk Public Backlash
 If you’re taking work overseas (even just to write a blog or two), your
business very well may run into ill will from consumers that have taken a
moral stance against outsourcing. Right or wrong, for better or for worse,
some form of criticism is often inevitable.
6.You Can Lose Your Focus
 Because many outsourcing agencies or freelancers tend to service multiple
clients at any given time, the work you’re sending out may not be receiving
the focus it deserves. Depending on the processes you’re outsourcing, that
lack of focus could be detrimental to your small business.

22. DEMERIT OF OUTSOURCING
7.You Shift Time Frames
 One major disadvantage of outsourcing particular tasks is the risk that your
freelancers or partner agency may be marching to the beat of a different
drum. As a result, it might be difficult to synchronize schedules in order to
ensure your customers receive what’s promised to them on a reliable
timeline.
8.You May Face Moral Dilemmas
 While it may not be an issue for everyone, a major disadvantage of
outsourcing is that you may be denying your team or a talented local agency
crucial work or development opportunities. Growth begets growth, and by
outsourcing work, you may not be contributing to the growth of your
community.

23. CONCLUSION
The list of companies that outsource we have provided you with is only the tip of
the iceberg. Today the question about whether or not your business should
outsource is almost irrelevant. Companies that want to compete on a global scale
need to look for the most cost-effective and useful strategies possible, and
outsourcing is high up on that list.
It is clear that regardless of the size of the business and its services, there are
benefits that can be realized by outsourcing. Companies around the world have
started to understand this concept to an ever greater degree.
hey have recognized and grasp the fact that by outsourcing non-core functions,
they are better able to focus on what their business was founded to do.