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What is outsourcing/co-sourcing?
Outsourcing in broad terms is a transfer of some
business functions or components of business processes to an outside contractor.
To remain competitive, many companies outsource as a way to reduce costs, increase
efficiencies, and refocus critical resources.
So if you are still looking for an
answer to your question: What is outsourcing?
Instead you should now ask what outsourcing
can do for you and how?
Outsourcing can be defined as `the strategic use of outside
resources to perform activities traditionally handled by internal staff and resources`.
Outsourcing is a strategy by which an organisation contracts out major functions
to specialised and efficient service providers, who become valued business partners.
However, the difference between simply supplementing resources by `subcontracting`
and actual outsourcing is that the latter involves restructuring of particular business
activities including, often, the transfer of staff from a host company to a specialist
company with the required core competencies.
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