GENERAL KNOWLEDGE

Detailed explanation-1: -Outsourcing is when a company hires a third party to perform their task; in other words, when a company employs another company to fulfilling its tasks, it is termed outsourcing. In 1989, it was first recognised as a business strategy, and later, in the 1990s, it became a fundamental part of the business.

Detailed explanation-2: -The outside company, which is known as the service provider or a third-party provider, arranges for its own workers or computer systems to perform the tasks or services either onsite at the hiring company’s own facilities or at external locations. Companies today can outsource a number of tasks or services.

Detailed explanation-3: -To save this cost, a business may outsource the whole manufacturing department through a contract with a third-party manufacturer. For example: A smartphone company outsourcing its product manufacturing to a company in China. A TV brand outsourcing its parts manufacturing to another country.

Detailed explanation-4: -BPO is the abbreviation for business process outsourcing, which refers to when companies outsource business processes to a third-party (external) company. The primary goal is to cut costs, free up time, and focus on core aspects of the business. Two types of BPO are front-office and back-office.

Detailed explanation-5: -Professional outsourcing. IT outsourcing. Manufacturing outsourcing. Project outsourcing. Process outsourcing. Operational outsourcing.