Outsourcing result in cost reduction how explain with an example
Dear student.
Outsourcing means to source out some activities instead of doing it in-house. It is a long term contracting out generally non core activities of organisation. It helps an organisation to focus attention on core areas. It also helps to reduce cost by outsourcing non core activities to specialists. One of the main benefit of outsourcing is cost saving, by outsourcing non core activities an organisation can focus on its core activities.
For example: By outsourcing customer care services to call centres, a company can focus on core field areas.
ii) By outsourcing HR activities to a HR firm one can enjoy many benefits of payroll etc. and can focus on its core areas,
Regards
Outsourcing means to source out some activities instead of doing it in-house. It is a long term contracting out generally non core activities of organisation. It helps an organisation to focus attention on core areas. It also helps to reduce cost by outsourcing non core activities to specialists. One of the main benefit of outsourcing is cost saving, by outsourcing non core activities an organisation can focus on its core activities.
For example: By outsourcing customer care services to call centres, a company can focus on core field areas.
ii) By outsourcing HR activities to a HR firm one can enjoy many benefits of payroll etc. and can focus on its core areas,
Regards