ENTREPRENEURSHIP

Detailed explanation-1: -Outsourcing is not a new concept in business. Outsourcing strategy has been in use since 1989 when it was recognized as an essential business strategy and gained its popularity in the 1990s.

Detailed explanation-2: -Offshoring and outsourcing are often confused. Outsourcing simply means delegating business processes to another company or independent contractors. Meanwhile, offshoring involves running a portion of business operations in another country.

Detailed explanation-3: -While the practice of outsourcing is loaded with benefits for the business, it can negatively impact the work culture within a company. Employees are crucial to business success. Outsourcing of tasks can create a fear that they may be replaced or the company no longer needs them.

Detailed explanation-4: -Firms often outsource business processes to increase profit, however, outsourcing could be problematic for companies who underestimate their budget. If you don’t define your budget and project scope clearly, you may have to bear unexpected expenses like additional software, new employees, extended timelines, etc.