Business Outsourcing write for us: A company does not have to do everything necessary to produce its products and services. A retailer does not design or manufacture the furniture that makes up the store’s interior. A large consumer goods company doesn’t do its core market research independently. A local baker does not grow wheat or grind it into flour. Why don’t these companies do these things? Because other companies have specialized in the required tasks and can do them better and more inexpensively. This process terms outsourcing.
Outsourcing can be transparent as per shadow:
“The delegation of one or more business processes to an outside provider, who then owns, manages and administers the selected processes following an agreed standard” [CIPD]. It’s important to note that outsourcing is NOT the same as “offshoring” (the two terms are commonly misused for the same thing). Offshoring is subcontracting business activities or services to a third party abroad and relocating business activities or services to another nation as a direct or indirect employer. In other words, offshoring does not always involve the services of an external provider. Outsourcing always consists of another company or organization providing the service to you. Most companies have always outsourced some of their activities. However, more business activities and processes have been purchased from suppliers in recent decades.
The main reason for the growth of outsourcing is usually a way to reduce costs. But the quality and flexibility of the service or product can also be significantly increased. Whether to outsource or not is part of a company’s debate about the scale of its business should be. In other words, What should a company do for itself? What should a company buy from others
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