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Illustrate outsourcing with suitable examples. - Organisation of Commerce and Management

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Question

Illustrate outsourcing with suitable examples.

Answer in Brief

Solution

Company benefits in two ways.
1. It reduces its own cost
2. It uses the expertise of the firm which specializes in a particular kind of service.

Examples of outsourcing:
The establishments such as shops, malls, housing societies, offices, etc. outsource facilities like canteen, sanitation, security, etc. In the same way arrangements for the wedding, anniversary, birthday celebration can also be outsourced.

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Outsourcing
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Chapter 5: Emerging Modes of Business - Exercise [Page 111]

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