During the Industrial era companies had one huge building that owned, handled and directly controlled the assets and the processes. Towards the center of the 20th Century, diversification had become the tradition and these required layers of administration which called for immense supervision resulting in an organization which was overstuffed with workers. By the 1980’s outsourcing gradually began to show popularity. Publishing was the first industry to begin outsourcing. They outsourced some of their areas like editing, typesetting, proofreading, etc. Official outsourcing was yet to take off. During the 1990’s the industries saw greater importance on cost-savings. Steadily many areas like contract labor, accounting, human resources, data entry etc. was outsourced. By the completion of the century, customer service outsourcing functions became the foundation of the outsourcing industry.
Outsourcing can precisely be described as transfer and delegation of non-core areas of business or non-revenue producing or day to day operations to an external service provider which benefits the company on allowing it to concentrate on its specialized areas. Most of the common outsourced areas are: