An Overview of Outsourcing and Most Commonly Outsourced Functionalities

outsourced IT services

Outsourcing is one of the most sought-after business techniques to enhance operational efficiency and productivity. It includes the practice of hiring a dedicated third-party service provider to execute the day-to-day operations and functionalities of a company.

Outsourcing presents a cost-cutting strategy while at the same time enhancing the operational productivity and efficiency of an organization without consuming any additional overheads in terms of investments and technologies. Let us now see some of the most commonly outsourced business functionalities.

Most Commonly Outsourced Business Functionalities

1) Robotic Process Automation

Robotic Process Automation, RPA can enable a team to eliminate repetitive processes. In-house teams may be often required to work on repetitive processes that can drain up their time and energy. A reliable outsources provider can offer a client organization to exploit technologies based on RPA that can help them to automate monotonous and repetitive tasks.

These systems use deep learning solutions that can be used to identify repetitive tasks and use human-like intelligence to decide on the next consequential actions. Automated solutions using RPA can streamline the process workflows, and thus help an organization to embrace better flexibility by eliminating mundane and repetitive tasks.

2) Cloud Support Services

Cloud adoption is gaining huge traction these days. Most mass service providers are adopting the cloud. This has resulted in increased demand for cloud service providers. Cloud outsourced service providers are offering their services to clients that enable them to manage and control their environment.

The most common types of cloud services that are often sought after are Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). Cloud models are basically classified as private, public, hybrid, and multi-cloud. The rapid and widespread growth of digitization has resulted in a surge in cloud adoption.

3) Software Development is Becoming Outsourced

Software development is now becoming increasingly outsourced. Most businesses are now hiring the services of software development service providers to successfully complete projects that are related to software development. Nowadays, we can see that most financial organizations are shifting to digital service applications based on the cloud.

In order to provide the best services to the customers, these organizations need the services of cloud-native software development experts. A faulty or erroneous software apart from causing inconvenience to the customers can also result in compromising the security. Outsourced software support services apart from enabling easy execution of operations can also ensure better compliance of the applications to the latest security measures.

4) Knowledge Process Outsourcing

In this mode of outsourcing, knowledge-intensive activities and core business-related processes are outsourced. It involves contracting work and other day-to-day activities to dedicated service providers. It is usually done when a business faces an inadequacy of experts.

Hiring knowledge-based work from qualified subject matter experts can not only help an enterprise to execute their day-to-day activities better but also enable their in-house team to gain the expertise to manage such operations by getting to learn from the experts. Knowledge Process Outsourcing does not incur much cost overheads while at the same time offering the services of the best experts.

5) Customer Support Outsourcing

Customer support outsourcing is nowadays becoming widely common. Relying on the primordial forms of customer support can result in a company lagging behind its competitors. So instead of investing in dedicated solutions and expertise, an organization can consider outsourcing customer support services.

Most of the outsourced customer support providers offer access to the latest technological solutions based on Artificial Intelligence, multi-channel customer support, automated response systems, etc. Outsourced support services can also help an organization evaluate the success of their customer support operations and envisage appropriate strategies to improve them. Unlike in the past, when customer support operations were confined to a physical brick-and-mortar space, customer support operations have now become remote. Customer agents now have access to the latest technological tools and solutions that can enable them to have access to the proprietary company-specific applications that are used to address their customers.

6) Governance

Governance is one of the most critical aspects that cannot be overlooked in any instance. Apart from having the best class of employees and solutions that can streamline the overall workflow, it is equally essential to ensure the best governance that can help an enterprise to perform their day-to-day functionalities as well as ensure the best security and compliance of their workplace from any security threats and vulnerabilities.

Outsourcing service providers can also provide monitoring and reporting solutions that can help an enterprise to keep a check on their resource consumption and identify possible opportunities for cost optimization. Most businesses are nowadays deploying virtual assistants that can handle various administrative and operational tasks.

7) Accounting

Accounting is one of the most commonly outsourced business functions. Companies can consider outsourcing their accounting functionalities if they do not have the in-house expertise to manage activities related to accounting like financial control, financial reporting, bookkeeping, payroll management, etc. Skilled accountants can help enable an organization to manage their time and resources better and get to know about opportunities that present possibilities for reduced overheads.

8) Access Management

Identity and access management is an important function that can ensure better compliance with the day-to-day operations and functionalities of an enterprise. Access management solutions can ensure better authorization and thus see to it that only the privileged personnel are granted access to the operational workloads of an organization. Most of the outsourced service providers offer the latest security solutions based on encryption, firewall, dual-factor authentication, and intrusion detection.


The high-speed progress of technologies clubbed with the rapid changes in the business landscape has made outsourcing a formidable option for businesses. In this article, we have seen some of the commonly outsourced functionalities. Indeed outsourcing is set to scale greater heights in the years to come.

Activelobby is a company that provides a wide range of outsourced services including Cloud Services, Hosting Support, Application Support, etc to name a few. You have unlimited possibilities to outsource your operations with Activelobby.

Rohith Krishnan

Rohith SK is an MSC computer science graduate living in Cochin, Kerala. As a technology enthusiast, he is always on the lookout for the latest trends and developments in the field, with a particular interest in cloud computing and DevOps updates. Apart from his passion for technology, Rohith SK is an avid reader and enjoys spending his free time exploring different genres of literature. He believes that reading is one of the best ways to expand one's knowledge and understanding of the world. With his expertise in computer science and a passion for technology, Rohith SK regularly contributes articles and blog posts on the latest trends and updates in the industry. His articles offer insights and valuable perspectives on the various aspects of cloud computing and DevOps, and are widely read and appreciated by readers all over the world. As an experienced technology writer and researcher, Rohith SK's articles are well-researched, informative, and easy to understand, making them accessible to readers of all levels of technical knowledge. Whether you're a beginner looking to learn more about the latest trends in technology, or an experienced professional seeking insights and updates, Rohith's articles are sure to provide valuable information and insights.

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