Nowadays more and more
companies are outsourcing parts of their operations in order to become more flexible in a changing business environment. In the practice of outsourcing,companies hire outside businesses to handle parts of their internal operations. In the past decade, outsourcing has helped many companies focus on the most inportant parts of their business: growth and profitability.
Companies such as General Electric,Nike,Xerox, and Microsoft use outsourcing in different ways. Ouganizations have outsourced such functions as information technology,real estate management,human resources,and finance.
A big advantage of outsourcing is that it allows an enterprise to concentrate on the business it does best. For example, a bank may outsource its real estate management,but it would never outsource the cor of its business: financial transactions. Of course,bifore contracting out internal functions, a company must first carefully examine which processes are less essential.
