Outsourcing is defined as a company agreeing to a contract with a separate entity in order to provide services that are not readily available within the company. The specialists are often part of a firm that advertises specialists for hire.

Benefits

One of the main benefits of outsourcing is how much money it can save a company. For instance, a law firm is not likely to have people on hand to deal with the payroll. Creating a payroll division within the firm would require more funds and resources than simply contracting data-entry specialists to do the work.

Types

Companies outsource jobs such as custodial services, data entry clerks, web design, freelance writing and graphic design. In some cases, a company will outsource an entire project that will require many different roles to be filled.

Drawbacks

Specialists who take on an outsourced contract usually face a few drawbacks. One is the fact that most outsourcing jobs do not offer any kind of benefits aside from the base pay. A drawback for companies looking to outsource work overseas is that it might cause difficulties as a result of the differences in time zone, culture and language.