What does outsourcing mean in business studies

Answer 1

Outsourcing in business studies refers to the practice of hiring external parties or firms to perform certain business functions or tasks that were previously done internally. This can include activities such as manufacturing, logistics, customer service, information technology, accounting, and many others. By outsourcing these functions, companies aim to reduce costs, increase efficiency, access specialized expertise, focus on core competencies, and compete in a global marketplace. Outsourcing can be done domestically (within the same country) or internationally (across different countries). However, it can also involve potential risks such as quality control, security, loss of control, and negative impacts on local employment.