How does outsourcing represent a new mode of business?
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Outsourcing represents a new mode of business as it is a departure from the traditional thinking of self sufficiency in business It refers to a long-term contracting out of business activities to captive or third party specialists with a view to benefitting from their experience, expertise, effictency and even investment. Generally the non-core business acttvitles are outsourced but of late even some of the core activities have started being outsourced.
Outsourcing comprises four key segments: contract manufacturing, contract research, contract sales and Informatics. Global competitive pressures for higher quality products at lower costs, demanding customers and emerging technologies have induced a re-took at business processes and hence resulted in outsourcing as a new mode of business which is now being resorted to not out of compulsion but out of choice.