Outsourcing is the transfer of entrepreneurial tasks and structures to external service providers. Baically, the term is used to describe an agreement between two companies, where one company hires another to carry out specific tasks on behalf of the hirer. It also refers to the outsourcing of jobs to lower-cost subsidiaries.
Primarily, outsourcing is used by companies to save costs, be efficient and improve the quality of goods or services. Further, outsourcing can can improve the strategic positioning of a company in the market.
Nowadays, outsourcing is used in almost all areas of business. It is mostly employed in marketing, accounting, customer service and information technology. In general, all time-intensive tasks can be outsourced.
The is the process of transferring internal company's operation to external service providers.
