The activities involved in outsourcing are wide-ranging and depend entirely on the business function being delegated. Bookkeeping Services in Cleveland. Essentially, any non-core task or specialized process that a company needs to run smoothly can be performed by an external provider.

These activities are generally grouped into three main categories: Business Processes, Information Technology, and Knowledge-Intensive Tasks.

1. Business Process Outsourcing (BPO) Activities

BPO involves delegating routine, non-core business operations. These activities often support the basic functioning of the entire company.

Financial & Accounting (FAO):

Bookkeeping and Transaction Processing: Recording daily sales, purchases, and expenses.

Payroll: Calculating wages, managing deductions, and filing payroll taxes.

Accounts Payable (AP) and Receivable (AR): Managing vendor bills and customer collections.

Financial Reporting: Preparing monthly or quarterly financial statements.

Customer Relationship Management (CRM):

Customer Service: Managing inbound and outbound call centers.

Technical Support: Providing help desk and troubleshooting services.

Lead Generation: Making cold calls or qualifying sales leads.

Human Resources (HR):

Recruitment: Sourcing, screening, and interviewing candidates.

Benefits Administration: Managing employee insurance and retirement plans.

HR Records Management: Maintaining digital employee files.

2. Information Technology Outsourcing (ITO) Activities

ITO involves external firms managing a company’s technology infrastructure and development needs.

Infrastructure Management:

Cloud Services: Managing cloud storage, infrastructure, and computing resources (e.g., AWS, Azure).

Network Management: Monitoring and maintaining the company's network and servers.

Security Services: Implementing firewalls, monitoring for threats, and managing data backups.

Application Services:

Software Development: Building, testing, and deploying custom software applications.

Application Maintenance: Fixing bugs, updating features, and ensuring software compatibility.

Data Center Management: Handling the physical operation of data centers.

3. Knowledge Process Outsourcing (KPO) Activities

KPO involves delegating high-value tasks that require specialized technical or analytical expertise and judgment.

Financial Analysis:

Investment Research: Providing market intelligence and due diligence reports.

Advanced Data Modeling: Creating financial models, budgets, and forecasts.

Risk Management: Assessing and monitoring financial and operational risks.

Legal Process Outsourcing (LPO):

Contract Review: Analyzing and drafting legal agreements.

Litigation Support: Organizing documents for legal cases.

Patent Research: Conducting intellectual property searches.

Research & Development (R&D):

Market Research: Conducting consumer surveys and competitive analysis.

Scientific Research: Assisting with pharmaceutical or engineering studies.

In short, the activities of outsourcing cover everything from routine data entry to strategic financial analysis, allowing a business to focus its resources only on its core strengths.