an agreement in which one company contracts-out a part of existing internal activity to another company" in telugu
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Outsourcing is "an agreement in which one company hires another company to be responsible for an existing internal activity."[1]It often involves the contracting of a business process (e.g., payroll processing, claims processing), operational, and/or non-core functions, such as manufacturing, facility management, call center support). The term "outsourcing" came from "outside resourcing" and dates back to at least 1981.[2][3]Outsourcing sometimes involves transferring employees and assets from one firm to another. Outsourcing is also the practice of handing over control of public services to private enterprise.[4]
Outsourcing includes both foreign and domestic contracting,[5] and sometimes includes offshoring (relocating a business function to a distant country)[6] or nearshoring(transferring a business process to a nearby country). Outsourcing is often confused with offshoring, however, they can be distinguished: a company can outsource (work with a service provider) and not offshore to a distant country. For example, in 2003 Procter & Gamble outsourced their facilities' management support, but it did not involve offshoring.[7]
Financial savings from lower international labor rates can provide a major motivation for outsourcing or offshoring. There can be tremendous savings from lower international labor rates when offshoring.
In contrast, insourcing entails bringing processes handled by third-party firms in-house, and is sometimes accomplished via vertical integration. However, a business can provide a contract service to another organization without necessarily insourcing that business process.
Outsourcing includes both foreign and domestic contracting,[5] and sometimes includes offshoring (relocating a business function to a distant country)[6] or nearshoring(transferring a business process to a nearby country). Outsourcing is often confused with offshoring, however, they can be distinguished: a company can outsource (work with a service provider) and not offshore to a distant country. For example, in 2003 Procter & Gamble outsourced their facilities' management support, but it did not involve offshoring.[7]
Financial savings from lower international labor rates can provide a major motivation for outsourcing or offshoring. There can be tremendous savings from lower international labor rates when offshoring.
In contrast, insourcing entails bringing processes handled by third-party firms in-house, and is sometimes accomplished via vertical integration. However, a business can provide a contract service to another organization without necessarily insourcing that business process.
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