What is the Process of Outsourcing?

What is the Process of Outsourcing?

Outsourcing is the process of handing off some or all work to an outside source, which can include businesses, contractors and employees in another country. The main reason companies choose to outsource their operations is for its cost-effectiveness, allowing them to focus their investments on new opportunities and strategic initiatives.

Companies normally hire other companies to perform the tasks that would otherwise be the responsibility of their own employees in order to have these tasks performed. These can include accounting, administrative duties, customer and IT service. There are four main types of outsourcing: Product/project, process, resourcing and captive.

Process of Outsourcing

Process of Outsourcing

A typical process for outsourcing looks like this:

Step  1: Define goals and strategy 

To determine how outsourcing can benefit your business, you have to have a clear idea of what you want from the outsourcing relationship.

Step  2: Find an agency

You’ll need a few different search terms that will help you find a company that has the capabilities to accomplish your goals.

Step  3: Investigate how it’ll work

Once you have some options, you need to find out how each of them can help you meet your goals and whether they’re a good fit for how you work.

Step  4: Review the contract

Review the contract

Once you’ve selected an agency, it’s time to sign on the dotted line and determine how much support you’ll get from each other.

Step  5: Measure how it’s going

Once your outsourcing relationship is established, you’ll need to measure how the project is operating and how well all parties involved are meeting their obligations.

Step  6: Decide how to scale

If you find that outsourcing has been a positive experience, you can move forward with future projects. If not, you can end the relationship or change how you’re managing your agency.


Outsourcing helps companies find cost-effective ways to optimize their workforce without having to train employees on how it’s done.  The article has outlined a process for outsourcing, including four types and what you need to do if your company wants more information about this topic.

If you’re interested in learning more about outsourcing, let us know! Our team can help you figure out which type would be best for your business goals and provide advice on where you should go from there. We want our clients’ businesses run as smoothly as possible so they can focus on growing them into something even greater than before!