Hi Siddeshwar,
Basis to outsource :- Business decisions like ROI on the investment for instance, payroll processing is outsourced - the company gets better returns & services to the employees from one vendor rather than Accts & HR deptt working on it and the employees still crib about the queries & the administrative cost & time involved in processing the same while these professionals with the help of outsourcing can be utilised better for higher priority & pressing issues which actually add value to the organization and the employees.
Or recruitments - Many companies have outsourced the same to specialised agencies with one person on a contact basis to co-ordinate the same.
Legal issues - none as if i know on this subject esp in today's cost competitive environment - however would appreciate if someone can draw attention to this.
Well, top BPOs of today are doing the backend operations of the MNC Clients who are saving Billions of US $..don't be surprised if these functions soon shift to the third world countries like Africa in near future..it's all matter of economics and business goals..
Let face the reality - Outsourcing is the order of the day...it's always existed in the past and shall exist in future as well..don't many families keeps Bai's to do the household work which helps the women to pursue the professional careers..
Cheers,
Rajat