Outsourcing is the contracting out of a company's in-house function to a preferred vendor with a high quality level in the particular task area. Outsourcing is one of the fastest growing trends in business. Large- scale organisations such as Telstra especially for their Internet and Pay-TV divisions have latched onto outsourcing due to the almost immediate opportunity of savings and quality improvement. Outsourcing can impact many elements of an organisation in a positive or negative manner. Areas such as structure, corporate culture, cost centres and labour have the most tendency to react to outsourcing developments. Employees of organizations don't benefit...
recruitment, money can be saved. Another consideration is the redundancy of workers, if employees are dismissed, here wages can be saved. If the organization locates a contractor that is cheaper than redundant workers then the net money situation is favourable for the organization. Often contractors and specialised in their particular task, so the factor of improved quality and reliability are driving forces when considering outsourcing.

Outsourcing does not eliminate decision-making and the need for managers to control. Rather, managers must continuously monitor and evaluate the outsourced functions to ensure that partners are as a whole beneficial to the organisation.