What does a company do when outsourcing?
When outsourcing, a company seeks to move internal operations to
an external source. For instance, you might decide that instead of
maintaining a payroll division in your human resources department,
that you'd rather outsource to a payroll company.
Outsourcing is done because you can often gain more expertise,
and lower costs, by contracting to firms that specifically deal
with particular business functions.
Outsourcing is often confused with "offshoring," which is when a
company moves a portion of its business functions overseas.
Outsourcing may be foreign or domestic.
Related Q&A：
How have employers benefited from outsourcing？Well, employers have gained a bunch of benefits from outsourcing, you know. For starters, it saves them a ton of money. They don't have to deal with all the costs associated with having full-time employees, like benefits and office space. It also gives them access to specialized skills and expertise that they might not have in-house. Oh, and it allows them to be more flexible. They can scale up or down the outsourced services based on their needs. So, it's really a win-win for employers in many ways!
