outsourcing refers to a company that contract with another company to provide services that might otherwise be performed by in-house employees. Many large companies in the American, Australian and European continents now outsource jobs such as call centre services, web development and promotion services, etc. These jobs are handled by separate companies that specialize in each service, and are often located overseas (offshore outsourcing).

Among the many reasons these companies outsource, the most prominent advantage seems to be the fact that it is cost effective. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers, and have fewer overhead expenses to meet, but primarily because the payment packages in these countries are way too low compared to developed countries.

outsourcing in addition to being cost effective allows companies to focus on their core business issues while the details are taken care of by experts from a remote location. This means that a good amount of the company’s resources and time can be utilized for the more important core issues within the company. Meanwhile the specialized offshore company that handles the outsourced work is streamlined with world-class capabilities and access to new technology that enable them to do the work efficiently and effectively within a minimum turnaround period.

If companies are looking to expand globally, there is no better alternative to offshore outsourcing. Outsourcing is the most cost-effective way to start building foundations in other countries.

However, there are some definite disadvantages to outsourcing as well. outsourcing often prevents direct communication between a company and its clients.

Nevertheless, it is a moot point whether the company representative in – for example U.S – will be effective in handling customer complaints, concerns, enquiry etc. Who's to say that someone in the U.S. is more knowledgeable or has better communication skills than someone overseas? Most people are however complaining of the customer service in the U.S. Why not give someone in India or elsewhere a chance to offer phenomenal service?