The First Industrial Revolution was witnessed in the year 1760 when machines were first used to help the human workers in completing some of the tasks with better efficiency and proficiency. As the time passed inventors and innovators discovered a plethora of new machines and we transformed into the Second Industrial Revolution. This period distributed the work between the humans and the machines, they both worked in their areas, and there was little to no connection between the two. Then came the Third Industrial Revolution and the machines took over most of the tasks done by man, in turn rendering the unskilled labor as asynchronous with time and they were forced to retire at an early age. It was in the Third Industrial Revolution that outsourcing as a concept took its shape and the current form of outsourcing is beneficial and harming the economy of various countries following these models.
Outsourcing is followed by every organization through three major models, these are:
- Professional service Outsourcing: Under this model of outsourcing the main goalwas to reduce the current costs incurred by the companies for performing a particular task. The professional services outsourcing of the consists of IT-related outsourcing, legal and account handling outsourcing, insurance outsourcing, human resources and related tasks outsourcing, security outsourcing, inventory outsourcing, and whatnot. Every professional service conducted by an organization can be outsourced to other entities as long as they are beneficial to the parent company.
- Manufacturing Outsourcing Model: Another important model for outsourcing, under this the companies and organization to decrease the manufacturing process choose to delegate the production process to other countries. This type of outsourcing is so extensive that companies working in the USA have decided to direct work towards factories in China and import their products from them. The principal aim for this kind of outsourcing is the benefit of a low-cost production process available in developing countries. If an organization is outsourcing to China, the total cost incurred is still less than the cost they have to pay in their nation for the production process.
- Process-specific outsourcing: Once outsourcing got a free hand from the various organizations, there was no stopping it and setting limitations to where it cannot go.The process-specific outsourcing refers to delegating work as per the process. For instance, firm outsourcing their logistics works to a professional logistics company on a temporary or permanent basis.