Outsourcing refers to the process by which the company uses external providers to manage its services. The examples of outsourcing are telecommunication, transportation and IT handling are examples. The boom of outsourcing was when Information Technology firmed its root, and it is said to be the most used version of outsourcing.
In today's world, globalization can be observed when one is sitting in a country of Asia obtaining services from Europe. For instance, in IT outsourcing, the website providers provide and obtain services from anybody around the globe. Another very famous feature these days is Tele-communication, where an enterprise in America can obtain services from a person sitting in India. However, the question that arises is how the payment and billing is done? This could be understood by analyzing both of them separately.
IT Billing:
The system in IT billing is a bit different from a normal billing one. Let's take an example of a person writing an article online for a company in Europe. Now, when s/he writes it and then has to take a certain amount, the procedure is to open his or her account and submit his or her account number.
When you provide your services online, you get your payment at the same time, which is processed by the company's account. This is a long and professional procedure, so one has to be a professional for handling it.
Next is how one pays online? Well, that's also simple: the modes of payment there are the pay pal, credit card system and the online account system. They pay it through the easiest and comfortable way of the service provider.
Telecommunication Billing:
The telecommunication billing is nearly like a normal. There is a contract between the tele company and the enterprise willing to obtain the service. They pay them a certain amount monthly. The Tele-company pays its employees on commission basis. It depends on the employee or agent, if s/he sells more products and attracts more customers, s/he gets more income and if not, s/he won't. His income is basically commission income.
Since outsourcing has become global, it is very easy for the companies to select the cheapest service providers with the best, as they are in the international market where they have the whole world open for them.
As in England, the labor is very expensive as compared to India and Pakistan. So these countries are real famous for outsourcing. It has been observed that in the past decades there has been a tremendous change in outsourcing. As globalization boomed with it, the outsourcing also boomed and a great decline in the billing was observed. Before that, a country had to depend on its own resources, which whether were expensive.
