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Outsourcing
What is outsourcing?
Outsourcing is when a company delegates certain tasks to third-party specialists or organizations instead of handling them in-house.
It’s a great way to get expert services without the time and costs involved in hiring and training full-time employees. This is especially useful for tasks that require specialized knowledge or skills that might be hard to find locally.
For example, a software company might outsource its accounting functions so it can stay focused on product development. This is especially relevant for companies that have difficulty finding the right specialists in their region.
Retail businesses often rely on outsourcing during seasonal peaks, temporarily bringing in extra staff for the holiday rush.
Please note that outsourcing is often confused with another concept — outstaffing. But the point is that they have different goals and approaches:
- Outsourcing means fully handing over a function to an external company. This reduces costs and lets businesses focus on core operations.
- Outstaffing is when you hire external specialists who work under your management but remain officially employed by another company.
The best choice depends on what your company needs — temporary extra hands for a project or a fully outsourced function to streamline operations.
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