Outsourcing as an Outcome of Globalisation
Globalisation has greatly impacted the way businesses operate, leading to the rise of outsourcing as a common business strategy. Outsourcing is the practice of contracting out certain business functions or processes to third-party providers, often located in other countries. This practice has become increasingly popular due to several reasons related to globalisation.

Cost Efficiency
One of the main reasons companies outsource is to reduce costs. With globalisation, businesses have access to a global labor market where they can find cheaper labor in countries with lower wages. This cost advantage allows companies to save money on labor costs and other expenses.

Access to Specialised Skills
Globalisation has enabled companies to tap into a larger talent pool worldwide. By outsourcing certain functions to countries with a skilled workforce in specific areas, companies can access specialised skills that may not be readily available in their home country. This helps businesses to improve efficiency and innovation.

Focus on Core Activities
Outsourcing non-core activities allows companies to focus on their core competencies and strategic goals. By delegating routine tasks to external service providers, businesses can allocate more time and resources to activities that drive growth and profitability.

Global Market Expansion
Outsourcing can also help companies expand their presence in global markets. By partnering with local service providers in different countries, businesses can establish a stronger foothold in international markets and cater to diverse customer needs.

Risk Mitigation
In a globalised world, businesses face various risks such as geopolitical instability, currency fluctuations, and regulatory changes. Outsourcing certain functions to multiple locations can help companies mitigate these risks by diversifying their operations and spreading exposure.
In conclusion, outsourcing has become a prevalent outcome of globalisation, enabling businesses to leverage cost advantages, access specialised skills, focus on core activities, expand into global markets, and mitigate risks. By embracing outsourcing as a strategic tool, companies can adapt to the changing dynamics of the global economy and stay competitive in the marketplace.