Outsourcing business processes has revolutionized the businesses across the globe in a big way. Outsourcing is a way of contracting a client project to a third party who can accomplish the task by spending less. What started as a means to get manpower intensive work at a cost effective price has now diversified into skill intensive domain s as well and with high rate of success.

Pricing is one of the most important aspects of winning a contract. Outsourcing is a viable mean of achieving quality work at cost effective prices, enabling companies to leverage the skills of cheaper labor which In turn makes their quotation lesser and increases the prospects of earning a new business project from a client by beating market competition.

This trend started about two decades ago when financially sound corporations of the West started outsourcing business pitched the technically sound talent in the Eastern part of the world. They were able to receive quality work even as they saved a lot on cost of labor. This trend has been an inseparable part of business now, especially so in the IT sector.

It is not only the outsourcing companies that stand to gain; the companies who receive outsourced projects have been able to improve and diversify their businesses in a big way. It has created job opportunities to thousands of technically skilled people and has given them an opportunity to be a part of world businesses. Even during tough economic times, these companies are able to keep themselves afloat due the increasing need to cut costs and the simultaneous increase in demand for offshore labor. Outsourcing has been beneficial in expending the business of both parties. It is a win-win situation for both parties involved.