Q7

Dear student.

Outsourcing refers to process of contracting out non core business activities to external agencies.
Core activity:  finance related]
Non core activity: Customer support related.

The need of outsourcing is increasing now-a-days due to following benefits:

1) Outsourcing reduces operating cost of company.
2) By contracting out non core activities, business can focus on core activities,
3) Through contracting out services, outsourcing helps in generating employment activities,
4) Outsourcing helps in attaining the objective of excellence.
5) Outsourcing helps in getting specialised services.

Regards