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Companies come to a new market with just the technology and nothing more than that. The labor, raw material, network and other resources are used from the domestic market. So, if the business plan is well-financed within the country, the technology can be imported and the goods can be produced and sold within the country. This would help to retain the fat profit margin within the country.
But this would deprive us of the opportunity to learn other factors and move up the value chain, thereby leaving us weak in the face of global competition.

Resources of the companies need to be focused for successfully implementing core business functions, and the non-core functions need to be outsourced. Outsourcing gives you the right combination of people, processes and technology to operate effectively in the global market place without burdening your time and budget.

Concept Behind Outsourcing

A company or person that provides information, to find a supplier or service, to identify a source. In layman’s language, it is a pure contracting transaction whereby one company purchases services from another while retaining ownership and responsibility for the underlying processes; the clients tell the provider what they want and how they want the work performed. Here, the client authorizes the provider not only to own and operate, but also redesign underlying processes, to reap even greater cost and efficiency benefits.

Companies outsource in order to achieve the following benefits: -