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Answer briefly the following question: What is meant by outsourcing? - Business Studies

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प्रश्न

Answer briefly the following question:

What is meant by outsourcing?

Briefly explain the following:

Outsourcing

संक्षेप में उत्तर

उत्तर

Outsourcing is contracting a business function or any specific business activity to specialized agencies, mostly in non-core areas such as sanitation, security, household pantry, etc., which the company outsources. The company makes a formal agreement with the agency. The contractors enter into an agreement with the company to provide the service. The waiters at the canteen or sanitation workers are not employees of the company but work directly under the contractor. The company makes payments to a contractor, who in turn pays his employees. The company benefits in two ways.

  1. It reduces its own cost.
  2. It uses the firm's expertise that specializes in a particular kind of service.
shaalaa.com
Concept of Outsourcing
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
2018-2019 (March)
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