ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Outsourcing is the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house by the company’s own employees and staff. Outsourcing is a practice usually undertaken by companies as a cost-cutting measure.

Detailed explanation-2: -Outsourcing is a business practice in which a company hires a third party to perform tasks, handle operations or provide services for the company.

Detailed explanation-3: -Outsourcing: Utilising the services of a third-party provider in another country. Offshoring: Work is completed in another country by a dedicated team. With outsourcing, the work that you send is completed by an anonymous staff or freelancers from a different company.

Detailed explanation-4: -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.

Detailed explanation-5: -Outsourcing helps companies experience significant savings in cost reduction in the rates vendors offer outsourced employees compared to in-house employees. In 2018, 62% of companies reported 10% to 25% savings when they outsourced and the remaining 38% of companies reported savings as high as 40%.