Taking internal company functions and paying an outside firm to handle them. Outsourcing saves money, improves quality, or can free company resources for other activities. Data-processing was the first industry to embrace the concept of outsourcing as a business plan. Payroll companies quickly jumped on the bandwagon taking over human resource department responsibilities from the small successful business person, saving them money in the process. Outsourcing has spread into may industries, such as Telemessaging, Telemarketing, and call centers. Companies in India, China, Pakistan, and other third world countries have made a huge impact in the outsourcing industry. Large companies in the U.S. have actually gone out of business because they are unable to compete with the cost of third world companies low labor cost.

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