Why do companies outsource?
Mainly companies outsource their non-core
activities to achieve competitive advantage
due to various reasons;
traditionally companies used to outsource just to reduce and control the operating
costs. Now various other advantages can also be envisioned. The company can focus more on
their core competencies and utilize their free internal resources for other
fruitful purposes. The company can outsource best things from best people
across the globe. It can gain access to the world-class capabilities and
resources that are not available internally or the functions
that are difficult to manage and the company can reduce the risks through sharing the
operation.
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