The most popularly known term in the market industry is “Outsourcing”. However, what people actually need to understand is that, there are in fact proper terms to be used in acquiring third party services for every business.

Generally speaking, outsourcing is a method of passing on some parts of your business’ tasks or even an entirely complete project to an external third party organization. What people rarely know these days is that, there are actually three types of outsourcing:


  • This refers to business process outsourcing where in the location of your acquired services is just within your national borders. This type of outsourcing is actually used by bigger corporations since monitoring and close proximity are required within their working agreement.


  • This refers to outsourcing business process that is in your neighbouring country. In nearshoring, you can either hire an individual or a group of specialists to perform some of your business tasks. You may hire these people directly through organizations or agencies. For example, if an organization located in France hires a third party contractor in England to perform some of their day to day business tasks.


  • It is a type of business process outsourcing that is done in a distant country. This includes a significant difference in each time zone.

As proven by the years, subcontracting is very advantageous for businesses in reducing their operational costs and in raising their profit margins. Furthermore, in outsourcing business process, these organizations are also able to acquire services from highly skilled and experienced professionals. Through outsourcing, these companies are able to allocate and adjust some of their resources to a much needed portion of their business.

Quick tip for business owners:

Your choice of outsourcing will mainly depend on your business goals. Simply assess what outcome you would want to achieve through outsourcing.

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