All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
Commerce Exam  >  Commerce Questions  >  ____________ refers to contracting out some o... Start Learning for Free
____________ refers to contracting out some of its activities to a third party which were earlier performed by the organisation.
  • a)
    Outsourcing
  • b)
    BPO
  • c)
    E-Commerce
  • d)
    E-Banking
Correct answer is option 'A'. Can you explain this answer?
Clear all your Commerce doubts with EduRev
Verified Answer
____________ refers to contracting out some of its activities to a thi...
While information exchange in e-business is fast, the physical delivery of products can still be time-consuming.
View all questions of this test
Most Upvoted Answer
____________ refers to contracting out some of its activities to a thi...
Outsourcing

Outsourcing refers to the practice of contracting out certain activities or functions of an organization to a third-party vendor or service provider. These activities were previously performed by the organization itself.


Reasons for Outsourcing


  • Cost Reduction: One of the main reasons for outsourcing is to reduce costs. By outsourcing certain activities, organizations can save on operational expenses such as salaries, benefits, and infrastructure.

  • Expertise and Efficiency: Outsourcing allows organizations to tap into the specialized knowledge and skills of external service providers who are experts in their respective fields. This can result in improved efficiency and quality of work.

  • Focus on Core Competencies: By outsourcing non-core activities, organizations can focus their resources and attention on their core competencies, which are the activities that directly contribute to their competitive advantage and value creation.

  • Flexibility and Scalability: Outsourcing provides organizations with the flexibility to scale their operations up or down based on business needs. They can easily adjust the level of outsourcing services as per their requirements.



Types of Outsourcing

There are different types of outsourcing that organizations can choose from based on their specific needs:


  • Business Process Outsourcing (BPO): BPO involves outsourcing specific business processes or functions, such as customer service, human resources, accounting, or IT support.

  • Information Technology Outsourcing (ITO): ITO is a type of outsourcing where organizations outsource their IT-related functions, such as software development, infrastructure management, or data center operations.

  • Knowledge Process Outsourcing (KPO): KPO involves outsourcing knowledge-intensive processes that require advanced analytical and technical skills, such as research and development, data analysis, or market research.

  • Manufacturing Outsourcing: This type of outsourcing involves contracting out the manufacturing or production of goods to external suppliers or manufacturers.



Benefits and Risks of Outsourcing

Outsourcing offers several benefits to organizations, including:


  • Cost savings

  • Access to specialized skills and expertise

  • Increased efficiency and productivity

  • Focus on core competencies

  • Flexibility and scalability


However, there are also risks associated with outsourcing, such as:


  • Loss of control over the outsourced activities

  • Quality and security concerns

  • Dependency on external vendors

  • Potential for communication and cultural barriers



Overall, outsourcing can be a strategic decision for organizations to optimize their operations, reduce costs, and enhance their competitiveness in the market.
Explore Courses for Commerce exam

Similar Commerce Doubts

Direction: Read the following text and answer the below questions :A very innovative firm has decided to increase its sales. The company is good but they have noticed that their growth has stagnated for the last couple of years. The top management calls for an emergency meeting. For this, they have outlined a series of activities to be performed by each person. The people are told the activities they have to perform. Thus, the work is divided among individuals. The efforts taken by the firm turn out to be very productive for the organisation and it gains huge profit. The newspapers and management institutes also praise the company for its high standards of management. However, as time passes the size of the organisation grows and thus they think of bringing another concept of management with a lot of precision. This concept of management is not voluntary but rather based on a lot of clear cut thinking in advance. The main idea is to reduce confusion among the employees regarding any of the activities they have been assigned.Find out one characteristic of the concept highlighted in the above case.

Direction: Read the following text and answer the below questions :A very innovative firm has decided to increase its sales. The company is good but they have noticed that their growth has stagnated for the last couple of years. The top management calls for an emergency meeting. For this, they have outlined a series of activities to be performed by each person. The people are told the activities they have to perform. Thus, the work is divided among individuals. The efforts taken by the firm turn out to be very productive for the organisation and it gains huge profit. The newspapers and management institutes also praise the company for its high standards of management. However, as time passes the size of the organisation grows and thus they think of bringing another concept of management with a lot of precision. This concept of management is not voluntary but rather based on a lot of clear cut thinking in advance. The main idea is to reduce confusion among the employees regarding any of the activities they have been assigned.Find out one importance of the concept highlighted in the above case.

Direction: Read the following text and answer the below questions :A very innovative firm has decided to increase its sales. The company is good but they have noticed that their growth has stagnated for the last couple of years. The top management calls for an emergency meeting. For this, they have outlined a series of activities to be performed by each person. The people are told the activities they have to perform. Thus, the work is divided among individuals. The efforts taken by the firm turn out to be very productive for the organisation and it gains huge profit. The newspapers and management institutes also praise the company for its high standards of management. However, as time passes the size of the organisation grows and thus they think of bringing another concept of management with a lot of precision. This concept of management is not voluntary but rather based on a lot of clear cut thinking in advance. The main idea is to reduce confusion among the employees regarding any of the activities they have been assigned.Identify the function of management highlighted in the above lines which the company follows

Direction: Read the following text and answer the below questions :A very innovative firm has decided to increase its sales. The company is good but they have noticed that their growth has stagnated for the last couple of years. The top management calls for an emergency meeting. For this, they have outlined a series of activities to be performed by each person. The people are told the activities they have to perform. Thus, the work is divided among individuals. The efforts taken by the firm turn out to be very productive for the organisation and it gains huge profit. The newspapers and management institutes also praise the company for its high standards of management. However, as time passes the size of the organisation grows and thus they think of bringing another concept of management with a lot of precision. This concept of management is not voluntary but rather based on a lot of clear cut thinking in advance. The main idea is to reduce confusion among the employees regarding any of the activities they have been assigned.Identify in the above lines a concept of management discussed which the company tries to bring.

Top Courses for CommerceView all

Top Courses for Commerce

____________ refers to contracting out some of its activities to a third party which were earlier performed by the organisation.a)Outsourcingb)BPOc)E-Commerced)E-BankingCorrect answer is option 'A'. Can you explain this answer?
Question Description
____________ refers to contracting out some of its activities to a third party which were earlier performed by the organisation.a)Outsourcingb)BPOc)E-Commerced)E-BankingCorrect answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about ____________ refers to contracting out some of its activities to a third party which were earlier performed by the organisation.a)Outsourcingb)BPOc)E-Commerced)E-BankingCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ____________ refers to contracting out some of its activities to a third party which were earlier performed by the organisation.a)Outsourcingb)BPOc)E-Commerced)E-BankingCorrect answer is option 'A'. Can you explain this answer?.
Solutions for ____________ refers to contracting out some of its activities to a third party which were earlier performed by the organisation.a)Outsourcingb)BPOc)E-Commerced)E-BankingCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of ____________ refers to contracting out some of its activities to a third party which were earlier performed by the organisation.a)Outsourcingb)BPOc)E-Commerced)E-BankingCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of ____________ refers to contracting out some of its activities to a third party which were earlier performed by the organisation.a)Outsourcingb)BPOc)E-Commerced)E-BankingCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for ____________ refers to contracting out some of its activities to a third party which were earlier performed by the organisation.a)Outsourcingb)BPOc)E-Commerced)E-BankingCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of ____________ refers to contracting out some of its activities to a third party which were earlier performed by the organisation.a)Outsourcingb)BPOc)E-Commerced)E-BankingCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice ____________ refers to contracting out some of its activities to a third party which were earlier performed by the organisation.a)Outsourcingb)BPOc)E-Commerced)E-BankingCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
SaveJoin the Discussion on the App for FREE
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup