The Core Concept: What is Outsourcing?

Bookkeeping Services in Cleveland. Outsourcing is a business practice where a company contracts out a specific job, function, or service (which was previously performed in-house) to an independent, third-party service provider, often in another country.

Key Elements Studied:

Contracting Out: It involves signing an agreement with an external party (the vendor) to perform non-core activities.

Focus on Non-Core Activities: Activities typically outsourced are those that are not central to the company’s core mission, such as:

Customer Care/Call Centres

Payroll and Accounting Services (Bookkeeping)

IT Services (Software Development)

Medical Transcription

Third-Party Expertise: The service provider (vendor) is often a specialist in that particular field, providing high-quality work efficiently.