Question

What is outsourcing?

What is meant by outsourcing?

Explain the meaning of the following:

Outsourcing

Answer 1

Outsourcing is the process of contracting a business function or any specific business activity to specialized agencies. Mostly, the non-core areas, such as sanitation, security, household pantry, etc., are outsourced by the company. The company makes a formal agreement with the agency.

Answer 2

Outsourcing is contracting with or obtaining goods and services from external providers that were previously performed in-house, allowing firms to reduce costs, access specialized skills, improve efficiency, and focus on core activities; common forms include business-process outsourcing, IT services, and manufacturing services.