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In principle, for a company, outsourcing is the action of subcontracting part of its activity. It’s a question of calling upon an external service provider to entrust the management of certain elements of its business.
The purpose of outsourcing is to help a company focus on its core activities: financial, material and human resources. It also allows the company to increase its efficiency and to improve itself.
The main objective of outsourcing is to reduce production costs. Why ? Because the services provided are cheaper than those assumed directly by the company.
In addition, outsourcing enriches the company that uses it.
It receives the services of highly specialized companies that provide it with skills that it would not have been able or willing to develop anyway.
The expertise of external service providers brings a know-how that can help the company reach a new level in these fields.
The most common form of outsourcing is offshore outsourcing, a business practice that uses the services of external providers in another country.
China, for example, is attracting the interest of a large number of manufacturers. For the past twenty years, the quality of its products has satisfied the most demanding customers.
Moreover, the country has relied on the know-how of local companies to support its economy. Recently, great advances have been made in China in the industry.
In addition, a quality control system will be put in place. Thus, it is almost guaranteed to get products that comply with international standards.
By outsourcing to China, manufacturers can focus on their core business.
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