May 3, 2023

Why Companies Choose To Outsource Their Tasks To Third Parties

Can you ever imagine a world without outsourcing, anymore? Probably not. Though the service may come off as a modern invention its roots go way back to the late 18th century.

Back then, people of various skills and talents were shipped across continents, which industrial leaders of that time, caught wind of. This made them realize the advantage outsourcing had, without them having to lose their own staff members at sea.

Why do firms outsource?

Fast forward to the present day, companies are deepening their involvement and recruitment of outsource tasks services for:

  • Reducing operational costs
  • Increase focus on core business capabilities
  • To develop a flexible and scalable process

Although the reasons mentioned above are the most popular ones, according to industrial research and survey’s there are many others that serve as benefits to why businesses proactively pursue outsourcing.

But before we get on to that, here’s a quick introduction to the term.

What is outsourcing?

The definition of outsourcing branches into 2 different paths.

One relates to it as an agreement made between a company and a third party in order to outsource complete or fulfill the firm’s internal or pre-existing tasks.

The other involves transferring employees of the third party to a certain company, to bridge the gap between their staff’s inadequacies.

Now, onto the reasons.

Top 5 global outsourcing companies


Accenture is one of the most popular outsourcing companies in the world today. So much so that industry experts have placed the company in the top 5. In 2010 the firm’s revenue topped at $21.55 billion.

Their extravagant clientele list boasts of firms that are part of the Fortune 500. Most of Accenture’s services revolve around BPO and bundled outsourcing.


Headquartered in Armonk, New York, IBM for decades together has come out at the top for being one of the most popular if not successful outsourcing companies around. Its major specialty is in technological outsourcing. Additionally, its supply chain savings once rained between $3 to $5 billion annually and about $500 million in product development.


Probably one of the only two Indian outsourcing juggernauts to be part of the top 10 list, WIPRO specializes in what experts call ‘total outsourcing’, which enables the firm to achieve targets that are directed towards a specific IT function.

Their superior quality has made WIPRO one of the best technology vendors in the market and is considered to be a go-to for multiple firms for their IT infrastructural needs.


Boasting over 100,000 staff members strewn across 36 countries, the French IT firm Capgemini has proven to be a great contributor to the technological outsourcing realm. In addition, they have had a good partnership with tech giants such as Microsoft and Intel, which adds to the company’s magnificent reputation.


Based in Issey-Les-Moulineaux France, Sodexo is THE most globally recognizable food services outsourcing company which specializes in vendor and facility management.

The company’s offerings are so massive that they serve easily over 10 million customers every day, across 700 facilities, and gives out over 9.3 million meals per day.

Reasons why companies choose to outsource

#1 Access to the latest technology

One of the primal reasons that firms find it useful to outsource to other firms is because of their ability to provide access to the best and latest technology available in the market.

This is especially prevalent in the IT industry since there is and always will be an increasing demand for software development, coding, and IT infrastructural know-how and expertise.

What this does, is advances the current technology portfolio of the respective firm which in turn enhances their working mechanism, output, and reputation in the market.

#2 Open the door to expert opinions

Outsourced professionals are predominantly experts in the respective field with years, if not decades of experience in a given field. So, it is safe to say that you wouldn’t have to worry about hiring fresh-out-of-college graduates, with limited experience in this case.

This is one of the main reasons why outsourcing seems like an attractive option to companies today.

Such professionals would already know of the demands made by the task at hand and would add something new by amalgamating the various experiences they have had previously.

Additionally, one would also save on training, orientation, and induction processes since the outsourcing service company would have already covered all their bases there.


#3 Augmented productivity

Enhanced productivity is probably an outcome that can be quickly attained and observed (as an outcome) when outsourcing has been imbibed into a company’s routine.

How is this possible? Because of the following three reasons:

  • The savings that you have reserved from outsourcing can be used productively on other revenue-generating projects.
  • Upon delegating menial jobs, one can decrease the stress on the in-house staff so that they can perform better, and be more able to save on money, precious time, and myriad other resources.


#4 Improved customer support

Remote working is quite well known for the positive effect it has had on the BPO (Business Process Outsourcing) Industry, pertaining mostly to customer support.

Companies often outsource this service because it costs a lot for them to have a full-fledged, in-house customer service team. Moreover, the outsourced agents are always proficient enough to connect with customers through high-touch communication channels.

Some of the commonly outsourced customer support tasks are:

  • E-mail support
  • Inbound/outbound calling
  • Live chat support


#5 Access to better talent through outsourcing

One of the hardest things to do is hire good talent. But outsourcing doesn’t allow for this issue to occur.

Outsourcing happens to be one of the biggest employment generating services in the world, today.   Because of this reason, the stakeholders of the outsourcing industry are adept at recognizing and nurturing great talent without much effort.

Additionally, it gives employees unlimited opportunities with respect to their own personal/professional growth and development. For instance, outsources workers from India repeatedly get the chance to expand their experiential horizons by having the chance to work for or on behalf of clients overseas.

This further motivates the individual to perform better at their tasks.


#6 A better chance of staying in the competition

By making use of a talented pool of human resources, small businesses that do not have a shot at competing with the big wigs before will have a shot at doing so.

outsource tasks services help make this happen by providing such companies the right professionals at the cheapest prices which ensure that their savings aren’t too compromised and get the right help for the right job respectively, thus increasing productivity and efficiency.

Since the inception of virtual assistance or outsourcing for that matter, business processes have gotten far easier with respect to increased production, scale-able opportunities giving companies the advantage of spearheading their operations without any problems or obstacles on the human resources front.

know more>> Managed Outsourcing Services Is The New Buzz Word

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