Explain the term Outsourcing

Question

What do you mean by the term Outsourcing?

Answer 1

Several organizations outsource part of their work to outside parties in the form of subcontract. Outsourcing is a regular feature both in the public sector as well as in the private sector companies. Many of the organizations have surplus labour and hence instead of hiring more people they go for outsourcing. Outsourcing is usually done for non-critical activities. Through subcontracting determines HRP outsourcing is of non-critical activities.