By Harshvardhan, the Subject Matter Expert at Edumarz
Solution: Outsourcing is yet another trend that is radically reshaping business. It refers to a long-term contracting out generally the non-core and of late even some of the core activities to captive or third party specialists with a view to benefitting from their experience, expertise, efficiency and, even investment. This simple definition leads one to the salient features of the concept that are not peculiar to an industry/ business or country but have become a global phenomenon.
The most important reason underlying the use of outsourcing is to benefit from the expertise and experience of others. Institutions like schools, companies and hospitals can outsource the cafeteria activity to the catering and nutrition firms for whom these activities comprise the core or heart of their operations. The idea of outsourcing is valuable as you tend to gain not only in terms of their expertise and experience and the resultant efficiency, but it also allows you to limit your investment and focus attention on what your core processes are. Little wonder that outsourcing is fast becoming an emerging mode of business. Firms have started increasingly outsourcing one or more of their processes which can be more efficiently and effectively carried out by others. What qualifies outsourcing as an emerging mode of business is its increasing acceptance as a fundamental business policy and philosophy, as opposed to the earlier philosophy of ‘doing it all by yourself ’.