How does outsourcing work
Outsourcing is the act of subcontracting out services usually performed in-house, by an external business.
Outsourcing works best when tasks need to be performed with a higher skill level, either due to specialized nature or scale, that the company is unable or unwilling to perform themselves. The most prominent reason for outsourcing can be attributed to cost-cutting.
Outsourcing is a fairly new term and one that has been popularized and coined by the Western world. This term was first used to express the out-sourcing of manufacturing jobs offshore, out of the US to Asian countries such as China or India. However, today out-sourcing can be done in any part of the world (eg. outsource web development Philippines). But outsourcing is not limited to just manufacturing.