Explain the nature of outsourcing.
The natures of outsourcing are:
Processes involved in outsourcing may e outsourced to a captive unit or a third party. A capative unit is a service provider set’for providing services of a given kind to only one firm. For example, general electronics is a captive unit in India providing certain kinds of services to its parent company in the U.*.A. as well as , to its subsidiaries in other countries.
Outsourcing, generally, involves outsourcing of non-core business activities.
Assurance of quality through specilaised outside agencies is an important feature of outsourcing.
Every outsourcing relationship involves processes and procedures which are often standardised. But, at the same time, there is some flexibility to ensure its success.
The out sourcer charges fees for performing his services on contract basis.
