No matter how big or small the organization is it cannot do everything on its own. There are certain things that some organizations, especially digital advertising agencies and BPOs have to outsource.
More often than not outsourcing is considered to be one the direct outcomes of globalisation. When the various countries put down their quotas and got away the tax barriers they imposed on products and services coming from other countries, outsourcing became as common as it is today especially with Enterprise content management system.
Now, of course, the idea of outsourcing has become much more organised. Companies now spread their operations globally in order to expand productivity. This is mainly because these companies hold their operations and function in multiple countries and are called Multi-National companies.
The idea of outsourcing work is becoming increasingly popular in developing countries like India, Pakistan, and Bangladesh because it directly converts into employment opportunities. The base of the organization might be in US, Canada, or UK but it allows individuals from these countries to work for multinationals. Moreover, it is equally good for these multinationals as developing countries also provide cheap labour. So, for example, a company manufactures cars. The technology it would require would be outsourced from North Europe/US or Germany. For the spare parts, the go-to country would be China. And once the product is made and sold the after sale service is mostly provided by countries where there is cheap labour and the youth is fluent in English.
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