What does outsourcing mean in business studies

Answer 1

Outsourcing in business studies refers to the practice of hiring an external party or a third-party company to perform certain tasks or functions that were traditionally handled within the organization. These tasks can include various business processes, such as accounting, information technology, customer service, manufacturing, or even entire projects. Outsourcing is often done to reduce costs, improve efficiency, access specialized skills or resources, or focus more on core business activities. It involves transferring the responsibility of a specific task or function to an external entity, typically through a contractual agreement.