What is outsourcing? Illustrate with one example.
Answers
Outsourcing is "an agreement in which one company hires another company to be responsible for an existing internal activity."
Reasons for outsourcing ⬇️⬇️⬇️⬇️⬇️
Reducing and controlling operating costs.
Improving company focus.
Gaining access to world-class capabilities.
Freeing internal resources for other purposes.
Streamlining or increasing efficiency for time-consuming functions.
Maximizing use of external resources.
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Outsourcing can be defined as follows:
Explanation: Outsourcing refers to the business practice where the company hands over a portion of their work to the third parties. It is a contract which is given either to the company or an individual known as service providers, in exchange of service fees.
Outsourcing Reasons:
- Reduction in operation costs.
- Effective and efficient completion of task.
- Expert services.
- Competitive advantage.
Example:
Alibaba.com: Alibaba, the world's largest global marketplace, outsourced the development of their website to a U.S. firm. The basic reason behind outsourcing is the skills and the knowledge which the owner of Alibaba was looking for. Additionally, Alibaba finds this as an opportunity to grow and expand their business overseas.
Learn more about Outsourcing:
Question: Define outsourcing. Which types of activities are outsourced?
Answer: https://brainly.in/question/7412594
Question: What do you mean by outsourcing of services ? write the merits and limitations of outsourcing
Answer: https://brainly.in/question/7406983