What is Outsourcing of accounting

Outsourcing meanany services those required/hired out side instead of permanent employee which is already hired for company task for which company pay salary and Gratuity fund, PF Fund, Conveyance, House rent , Entertainment Allowances and some time Bonuses, this employee has been paid salary as per mutual agreement which called appointment letter in this paper it has been mentioned what salary and other benefits will be paid to employee and it has been also mentioned what duties and responsibilities will be performed by employs. his all process called in house employment or you can say we hire employee on salary as per. But when we hired services from out of our employment and we fixed his remuneration in shape of salary or labor cost and give some task to do which almost be a short and uncertain task in this all situation we save many expenses which we paid our permanent employee but in other respect we take all duties and responsibilities same as we are taking from our P.E (Permeant employee)

Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company’s own employees and staff. Outsourcing is a practice usually undertaken by companies as a cost-cutting measure. As such, it can affect a wide range of jobs, ranging from customer support to manufacturing to the back office.

Outsourcing was first recognized as a business strategy in 1989 and became an integral part of business economics throughout the 1990s. The practice of outsourcing is subject to considerable controversy in many countries. Those opposed argue it has caused the loss of domestic jobs, particularly in the manufacturing sector. Supporters say it creates an incentive for businesses and companies to allocate resources where they are most effective, and that outsourcing helps maintain the nature of free market economies on a global scale.

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