Glossary
Outsourcing
Outsourcing refers to the practice of hiring another company or service provider to do particular business functions, processes, or services that should have been done by themselves in the organization itself. Activities like payroll, recruiting, IT, customer service, and accounting can be outsourced by organizations to make their processes efficient.
Important Features of Outsourcing
- Makes the business process cost-effective.
- Helps organizations concentrate on core business processes.
- Gives the organization the benefit of specialized skills and expertise.
- Makes the process scalable and flexible for the organization.
- Increases productivity of the organization by making non-core business functions more efficient.
Legal Considerations
There is no need for any statutory compliance in the case of Outsourcing. Organizations that hire outsourced employees need to follow the Contract Labour (Regulation and Abolition) Act, 1970, wherever it is applicable.
