Outsourcing

Outsourcing is subcontracting a process, such as product design or services, to a third-party company. The decision to outsource is often made in the interest of lowering firm or making better use of time and energy costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of labor, capital, (information) technology and resources. Outsourcing became part of the business lexicon during the 1980s. Reasons for outsourcing are Cost savings, Cost restructuring, Improve quality, Operational expertise, Staffing issues, Capacity management, Catalyst for change, Reduce time to market, Commodification, Risk management, Venture Capital.