What actually is outsourcing

What actually is outsourcing? Simply defined, outsourcing occurs when an organization transfers some of its tasks to an outside supplier. Offshore outsourcing occurs when these tasks are transferred to other countries. This outsourcing may take the form of constructing facilities and hiring labor offshore to produce services or products for sale and consumption offshore. Alternatively, offshore outsourcing may involve the utilization of offshore facilities and labor for the importation of goods and services into the U.S. In both scenarios, the purpose of offshore outsourcing is to take advantage of lower production costs, increase profits, and remain competitive in an increasingly global economy.