Class 11 Business Studies - Chapter Emerging Modes of Business NCERT Solutions | How does outsourcing represent a new mod

Welcome to the NCERT Solutions for Class 11th Business Studies - Chapter Emerging Modes of Business. This page offers a step-by-step solution to the specific question from Exercise 1, Question 2: how does outsourcing represent a new mode of busin....
Question 2

How does outsourcing represent a new mode of business?

Answer

Outsourcing described as the long term contracting out generally the non-core and of late even some of the core activities to captive or to the third party specialists with a view of benefiting from their experience, expertise, efficiency and even investment too. In this, non-core business activities are Outsourced. Sanitation and house-keeping duties are non-core for most organisations. For municipalities and sanitation service providers these activities forms the core of their business activity. In other words, depending upon what business a company is in, there will be some certain activities that are central while others are secondary as the organisations venture to do the experiment with. Outsourcing, they may initially, outsource only the non-core activities. Belau on, as they become comfortable, with managing interdependencies, they may start getting even the core activities which is done by outsiders.

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