The service sector is a gigantic sector in India as well as all around the world. This sector certainly plays a crucial role in most parts of the globe in concern with Economic Development, Gross Domestic Product, National Income, Per Capita Income and more. The service sector is one of those sectors which indeed generate huge employment around the globe and hence it is one of those sectors that are enabling the world in today's generation.

The service sector plays a substantial role in contributing to the country's Gross Domestic Product(GDP). These days the service sector occupies a crucial position in India as well as all around the world. The service sector is the prominent sector which is existing and bestows more than anything else to the economy of the country. Keep reading the article to understand the core concepts of Service Outsourcing.

What do you mean by Service Outsourcing?

Service Outsourcing is the business practice of hiring a team outside a company to accomplish services or develop goods that were indeed traditionally conducted in the organisation by the company's hireling and personnel. Service Outsourcing is a procedure usually attempted by business organisations as a cost-effective measure.

Examples of Service Outsourcing are:

1. WhatsApp

2. Slack

3. Alibaba

4. Accenture

5. Opera

6. Infosys

7. Basecamp

8. Google

9. GitHub

10. Skype

The above-mentioned are the biggest business giants that are prevailing around the globe and all of these business organisations are generating huge employment through outsourcing.

Types of Service Outsourcing:

1. Professional Outsourcing

2. IT Outsourcing

3. Manufacturing Outsourcing

4. Project Outsourcing

5. Process Outsourcing

6. Operational Outsourcing

What are the features of Service Outsourcing?

1. Cost efficient: Any existing business organisation aims at cutting down the costs and maximising the profits to a possible optimum status. Cutting down the cost is a prime element for any business tycoon, the more the cost is reduced the more beneficial it is for the organisation.

2. Improvised efficiency: Upswing of the efficiency is something that any provided organisation will look for, hence it is termed as one of the company's objectives to ensure that there is improved efficiency of the overall organisation alongside the individual employee working there.

3. Flexible capital: Flexible capital ensures the customized source of funding or investing which enables business organisations to reach their fund-raising objectives or goals for that particular term by bridging the void between debt and equity of the business organisation which ensures aiding minimum burden on the cash flows.

4. Improved priority on strategy or core potentials: When companies start outsourcing people, there is something that is taught to them in form of training and more which indeed enables the organisation or the employer in understanding the core potentials of the appointed employees and through that training, the organisation ensures in improving the priority on the designed strategies of the business organisation.

5. Access to mastery along with the resources: When the candidates are appointed the business organisations ensure in providing certain training to the employees in enhancing or mastering the existing skills or the latest skills which in return helps the organisation in building an efficient and safe time environment.

6. Highly flexible to face new challenges or hardships and commercial circumstances: Outsourcing is highly flexible as the kind of candidates that are appointed or are already working are those who can easily adapt to the latest technological advancements and are those who are always ready to take up new challenges in any provided juncture.

7. Stimulated duration to market: This feature is extremely important as it enables handling demonstration of the advertisement and helps in establishing the time series data for the marketing scope.

8. Passage to innovation, intellectual property and thought oversight: Outsourcing always looks forward to furnishing a route for innovation, intellectual property and thought oversight as a business organisation can not merely stand by the same aspects for a long period. Time changes, new things arrive and it Is important to move according to the existing trend.

9. Apparent cash influx: Outsourcing vividly showcases the visible and smooth cash inflows which again is pretty significant for assorted business organisations.

The features or the characterisation mentioned above clearly exhibit how they work and how they help in the long run of the business organisations.

Any given element that is existing in India, as well as all around the globe, has its share of pros or cons. Every blessing has its share of curses or vice versa and so is Service Outsourcing. So let us go ahead and vividly discern these two virtues.

What are the benefits of Outsourcing?

Let us have a brief glimpse at the benefits of the new trend which is going around the globe today and Service Outsourcing

1. Identity Recognition

2. Information Security

3. Intrusion Detection

4. Shared Database

5. Visitor Management

6. Access Control

7. Asset Management

8. Unified Reporting

9. Sensors and Alarms

10. Video Surveillance

11. Emergency Communication

12. Decrease in Workload

13. Cost Efficient

14. Organised Business Record

15. More Reliable Customer Support

16. Improves Business Productivity

What are the risks (limitations) faced by Service Outsourcing?

Everything in the world has a dark side which can sometimes be curbed and with that token let us have a look at the limitation of Service Outsourcing.

1. Lack of adequate acknowledgement

2. Absence of control

3. Differences in the time zones

4. Regional barriers

5. Language barriers

User activity monitoring

What are the factors that need to be considered in concern with Service Outsourcing?

1. Budget and expenses

2. Technical expertise

3. Reference

4. Time for response

5. Security

6. Time difference

7. Risk

These are the sheer factors that need extensive care and which are extremely important before considering Service Outsourcing. Because these factors are the primary factors which can have a high impact on businesses.


So far we discerned Service Outsourcing and the vital elements relating to the core concept such as the features, benefits, and limitations along with the factors to be considered. Every business organisation has different elements from one another even though certain key factors remain quite similar. Here we entirely understood all the necessary aspects of outsourcing. However, in the end, there are circumstances that a business organisation encounters where everything might turn upside down and any organisation needs to be capable enough to overcome or face any kind of circumstance without turning back.

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