how does outsourcing represent a new mode of business

Earlier, companies used to carry out non-essential operations of their business on their own. Their focus from their core operations used to get diverted due to these non-essential operations. This used to impact severely to the cost and time efficiency of their core operations and, hence were often considered as a hindrance to the growth of the company.

Outsourcing emerged as a new mode of business in which companies could contract out their non-essential operations to other firms that specialise in them. The companies could now specialise in their core operations by outsourcing such non-essential operations. This lead to an increase in efficiency in the operations of the business in terms of time as well as money.