OUTSOURCING

OUTSOURCING

It is hiring the services of another company, for the execution of some processes that are performed within the organization and purchase goods and services from external providers instead of using internal resources.

This is done when a company can not do something specific, then hires another that can do the job. This is done to relieve unnecessary work.

An example is the computer services; these can be rented, along with its maintenance, repair and upgrade thus avoiding unnecessary costs of personnel and equipment renovation for example. If we hire an outside company to perform a particular task, that is outsourcing.