Q.Explain the following term/concept.
Outsourcing

Outsourcing is handing over non-core business functions to external expert agencies, allowing the company to save cost and concentrate on its main business.

Meaning: Outsourcing is a modern mode of business in which a firm gets its non-core (supporting) activities performed by another specialised organisation rather than doing them in-house. Activities like accounting, payroll, housekeeping, customer support (call centres), advertising and legal work are commonly outsourced.

Features:

• Only non-core activities are given out; the firm keeps its core/main activities with itself.
• Work is handed to an outside expert agency that specialises in that function.
• It is done through a contract for a fixed period and fee.

Benefits:

• Cost reduction, since the specialist agency does the work more cheaply. …