Outsourcing
What is outsourcing and why do businesses engage in it?
Outsourcing involves contracting external companies to perform specific tasks or functions. Businesses engage in outsourcing to leverage specialized expertise, reduce costs, focus on core competencies, and gain flexibility.
What are the benefits and risks associated with outsourcing?
Outsourcing can bring benefits such as cost savings, access to specialized expertise, increased flexibility, improved efficiency, enhanced focus on core competencies, reduced time to market, and scalability. However, it also carries risks such as loss of control, potential quality issues, dependency on external providers, communication challenges, data security concerns, and potential negative impacts on employees and local communities.