There are 4 major types of outsourcing namely, Professional outsourcing, IT outsourcing, Manufacturing outsourcing and Project outsourcing.
1. Professional outsourcing: It is a type of outsourcing in which we don’t intend to outsource an entire function but wish to outsource some tasks of a function to a professional who is an expert in that field.
2. IT outsourcing: It is a practice where businesses outsource either whole of their IT function to a third party vendor or part of their IT function to a third party vendor. It can include sub-contracting your infrastructure services to an external vendor or contracting a third party to develop a software for your company.
3. Manufacturing outsourcing: Here companies hire external people to assemble parts of products or whole product outside the company.
4. Project outsourcing: Some companies may outsource a project to a third party instead of a whole function.