OUTSOURCING

So what is outsourcing? Simply defined it is the provision of a service, resource or product from outside the organization. However, as outsourcing has developed, this definition has become much too simple.
Outsourcing involves the transfer of the management and/or day-to-day execution of an entire business function to an external service provider.
Outsourcing and off shoring are used interchangeably in public discourse despite important technical differences.Outsourcing involves contracting with a supplier, which may or may not involve some degree of offshoring. Off shoring is the transfer of an organizational function to another country, regardless of whether the work is outsourced or stays within the same corporation/company.
There is a strong public opinion regarding outsourcing (especially when combined with off shoring) that outsourcing damages a local labor market. Outsourcing is the transfer of the delivery of services which affects both jobs and individuals. It is difficult to dispute that outsourcing has a detrimental effect on individuals who face job disruption and employment insecurity; however, its supporters believe that outsourcing should bring down prices, providing greater economic benefit to all