Question

What is outsourcing?

Hint:

Outsourcing allows companies to focus on core strengths while saving time and cost through external expertise.

Answer 1

Outsourcing is the business practice of hiring external firms or individuals to perform services or produce goods that were traditionally handled internally by the company’s own employees.
Step 1: Concept.
In outsourcing, a company delegates certain operations—such as manufacturing, customer service, or IT support—to third-party vendors, often to reduce costs or improve efficiency.
Step 2: Objective.
The main objective of outsourcing is to allow companies to focus on their core business activities while external experts handle specialized or routine tasks.
Step 3: Example.
For example, many companies outsource their customer care centers to other countries where labor costs are lower.
Step 4: Benefits.
Outsourcing helps in cost reduction, efficiency improvement, access to global expertise, and flexibility in operations.