AA strategy to keep all business operations in a cost reduction frame
BThe process of contracting out certain business functions to external providers, often in other countries
CA method to reduce international trade
DA form of government intervention in the economy
Answer:
B. The process of contracting out certain business functions to external providers, often in other countries
Read Explanation:
Outsourcing
- In simple words Outsourcing is when a company hires a third party to perform their tasks.
- It is a strategic business practice where a company or organization contracts out specific tasks, processes, or functions to external service providers rather than performing those tasks in-house.
- These external service providers can be located within the same country or, more commonly in the context of globalization, in other countries, which is often referred to as offshoring.
Key Aspects of Outsourcing in Globalization:
Cost Savings: One of the primary reasons for outsourcing is cost reduction. Companies can often achieve lower operational and labor costs by outsourcing tasks to countries where labor is more affordable.
Access to Specialized Skills: Outsourcing allows businesses to tap into specialized expertise that may not be available in-house. External service providers may provide a highly skilled workforce
Focus on Core Competencies: By outsourcing non-core functions, companies can concentrate on their core business activities and strategic priorities.
Time Zone Advantage: Outsourcing to providers in different time zones can enable companies to achieve round-the-clock operations, thereby speeding up tasks and processes.
Risk Management: Outsourcing can help spread business risks. For example, by outsourcing customer service to multiple call centers in different regions, a company can reduce the impact of service interruptions due to natural disasters or other unforeseen events.
Examples of Outsourcing Functions:
- Information technology services
- Customer support and call centers
- Software development and programming
- Human resources and payroll processing
- Accounting and financial services
- Manufacturing and production
- Content creation and digital marketing