Outsourcing describes the transfer of services, which until then were produced in the company with its own means of production, to third-party suppliers or service providers.
Brief description
The make-or-buy decision is a permanently posed control question in the enterprise. Cost efficiency and specialization force an enterprise to focus on its core competencies and prevent it from stockpiling typical enterprise activities and parts with third-party bidders. Foreign bidders and service providers generally primarily achieve cost and competitive advantages in their own area of specialization.
