Outsourcing is often defined as the process wherein a company or an organization subcontracts or gives a part of their business function to another company either local or abroad. The outsourcing industry continuously plays a major part in most developing countries' economic growth; some of these developing countries include India, Philippines and China.

The outsourcing industry is divided into three major types; the Business Process Outsourcing, Knowledge Process Outsourcing, and Information Technology Outsourcing. BPO or business processing outsourcing involves outsourcing a specific function like customer service and business consultancy. The Knowledge Process Outsourcing or KPO is an outsourcing category that involves advanced research, technical and analytical skills. Outsourcing programming and other computer related and internet related functions is known as Information Technology outsourcing. Business process outsourcing is the most popular and in demand type of outsourcing among the three.

Many companies outsource in order to achieve a higher quality of service due to a specific focus of the supplier. Getting an employee to focus in one specialization makes them more effficient in dointg their tasks and allows them to give better customer experience to your customers. The training of new employees can be done by batches making a handful of people experts in the field in no time. This makes the outsourced service more accessible to customers by providing them with more employees that can deal with whatever they need done.

It is also evolved into a competitive market for outsourcing providers. Luen Thai has been continually expanding its operations to absorb the supply chain process of Ralph Lauren which means they will make more money while letting Ralph Lauren save money on production and shipping. Remove This String. A report has said that 60% of the shoe production in the Philippines is outsourced from China.

The major locations for outsourcing are China, India, Philippines, and Malaysia. The factors that usually help boost the outsourcing industry in these countries are the low cost of labour and the good quality of work they deliver to the multinational companies and organizations.