What is Outsourcing?
Outsourcing is a strategic decision by a company to reduce costs and increase efficiency by hiring another individual or company to perform tasks, provide services, or handle operations that were previously done by employees within the company.
Reasons Why Companies Outsource
1. Reduce and control costs of operation (this usually the main reason).
2. Improve the company’s focus.
3. Liberate inner sources for new purposes.
4. Increase efficiency for some time-consuming functions that the company may lack resources for.
5. Use external resources as much as possible.
6. Sharing risks with a partner firm.
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