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What is outsourcing

What is outsourcing? Today this concept is often found in Runet, but not everyone knows its true meaning.

In this article, we will take a closer look at what outsourcing means and what it is.

What does outsourcing mean with simple examples

Outsourcing - transfer by an organization, on the basis of a contract, of specific types or functions of industrial entrepreneurial activities to another company operating in the required area.

Any legal business consists of a much larger number of processes than it might seem from the outside. For the successful development of his business, the head needs to keep accounting, deal with logistics, use software, etc.).

Since many people are burdened with many additional responsibilities, they prefer to outsource.

For example, you know how to create online stores, but you are a layman in attracting customers, communicating with potential customers, concluding contracts, writing articles, and many other things.

As a result, you resort to outsourcing services that help you run your business without unnecessary headaches. You only do what you are good at, and you outsource the rest. That is, all minor matters are handled by professionals (on the basis of an outsourcing service agreement).

It is worth noting that outsourcing differs from a one-time service in that the contract with a partner company is concluded on a long-term basis. For example, a firm signs an outsourcing contract for plumbing services.

For a specified period, the company will be provided with a team of plumbers, whose work will be paid by their employer, but you will be in charge. Basically, you rent specialists from a partner company.

As a result, thanks to outsourcing, you can focus on a specific area of ​​doing business without being distracted by minor, but nonetheless important things.

Examples of industrial outsourcing are found all over the world. A company is engaged in the development of a specific product or part of it, while the product itself is made, for example, in China.

Such cooperation is beneficial because the organization of their production and the use of their labor force is often unprofitable.

Watch the video: What is Outsourcing and Offshoring? (June 2025).

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