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Answer» Outsourcing: - When a company or individual hands over some of its processes or works to another company or a professional group it is called outsourcing.
- Both the companies sign an agreement and decide the nature of work, payment and its terms, time of delivering the work, etc.
- Outsourcing can be done within the company or with other companies.
Reason for outsourcing the works: - Large companies outsource small works so that they can focus on main activities of the companies.
Some companies even outsource their main activities in case they do not have sufficient infrastructure or knowledge to do on their own. - To save costs.
Examples of outsourcing:
A company may outsource call-center activity, production, marketing activity, product installation, after sales service, Research and Development, Analytical activities, etc.
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