Accounting Services in Cincinnati. Outsourcing is primarily categorized based on where the service is performed (Location) and what type of function is being delegated (Function).
When discussing the fundamental structure of outsourcing, the two most critical ways to classify it are by Geographical Location and Service Function.
1. Outsourcing by Location (Where is the work done?)
This classification refers to the physical distance and borders between the hiring company and the service provider. The choice of location heavily impacts cost, communication, and cultural alignment.
2. Outsourcing by Function (What is the work?)
This classification refers to the nature of the tasks being delegated, ranging from simple administrative duties to highly specialized knowledge work.
In practice, a business will often use a combination, such as Offshore BPO for basic customer service and Onshore KPO for specialized legal research.
Location
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