Outsourcing - Emerging Modes of Business Video Lecture | Business Studies (BST) Class 11 - Commerce

now coming to the last part of the
chapter that is outsourcing okay now if
I read the word out sourcing means
sourcing from outside meaning getting
your work done from someone else right
getting something done from external
sources rather than doing it within the
organization is what we define as out
sourcing okay now there are basically
three features of outsourcing number one
it involves contracting out contracting
out meaning giving the contract of work
to someone else that is outside the
organization that work will not be done
within the organization but outside the
organization in this connection only
second part that is non core activities
mostly the business organization are
going to outsource the non core
activities non core meaning something
which is not very important okay that we
are going to give someone else that we
are going to we are we are going to have
a third party to rule to do it for us
all right for example if you if we talk
about the Sanitation Department of them
hospitals or these hotels ticket you
hotel staff your hospital staff neo that
yeah a third agency ot a jockey in Co
supply quarter ticket same is the case
with these schools all these are phi
karim cherries and all they are not they
they are not on the payroll of the
school okay there is a third agency
joseki a sub low hire chiesa they they
are paid by that agency the school gets
into enters into a contract with that
third agency and makes the payment to
the agency and agency interns makes the
payment to all those employees so what
are we doing we are getting the non core
activities meaning not so important
activities outsourced from someone else
but this is just a basic definition fine
but nowadays if you come to look at it
even some of the core activities even
some of the core activities such as
recruitment training and development
okay or advertising they are also being
handed over to a third party
all right Q s RQ because
that third parties main job third
parties core activities advertising so
if I get my job done from a person from
a third person were not a part who's not
a part of my organization but is
excellent at this work fine hüseyin Mira
Cafe Volga medical cost reduction ojq
Yuki agar minute a player
advertisement bonanni hey - mu j ik up
na Alexi advertisement department banana
padega low higher converting a machinery
Creed nipple Iggy ticket but if a third
is it a min vacay agar may he come Bihar
Sakura section of ortho repayment q lega
because of economies of large scale fine
because that third party is not making
an advertisement only for me when kakari
ads banana thoughts are your company's
key be husband are a fine just say kid
we are able to reap the benefits of
economies of scale the miracle is my
father get it become a cost become hoga
and plus in the most effective and
efficient manner why because that third
party specializes in this particular
task okay so three features of basically
outsourcing would be it involves
contracting out non core activities and
now the core activities as well fine and
third processes may be outsourced to a
captive unit or a third party fine when
we talk a captive unit agaric potpourri
company which has a lot many
subsidiaries but is re subsidiaries
Huskie PK the four captive company yo
beaker sakte hai ki jessica training
curly ache unit ache unit established
Korea who is going to train the
employees of all the subsidiaries of
that particular company PK was going to
train the employees of W go in a
development a--they of key regarding jo
training denis avoid
captive unit owner bernard eh okey
tiffany be subsidiaries happen lobbies
unsub EK employee training by EPO key so
they are going to specialize in
imparting training to the employees find
again the process i mean the training
that is the job will be done in the most
effective and efficient manner and at
the least possible cost ticket and
another option is to give it to a third
party
fine now when a third party it basically
caters to all types of industries take a
if it caters to all type of companies
under all types of industries sign take
a that is called as horizontal sub Kojo
cater color that is called as
horizontals and if it is catering to
only one or two types of industries okay
if it is catering to only one or two
types of industries we term it as
verticals we term it as vertical here
now there after coming to what are the
different advantages of outsourcing sub
Seppala focusing attention as I said
mostly the non core activities of an
organization's our organization or
outsource to a third party or a captive
unit so the organization can focus all
its attention on more important
activities or also can be termed as core
activities to secure a very non core
activities will also be done with them
effectively and efficiently because that
third party or that captive unit
specializes in doing that and my core
activities will also be done with equal
effectiveness and efficiency because now
I am focusing on my attention time and
money on my core activities then quest
for excellence I just explained because
of division of labor just come the mayor
to women of Nepal Sokka just common
marry expertise may Evo venues Correa
chose my expert here too as a result
joke are many outsource Kiev obovata
check that he can say oka because many
specialist specialist Kodiak and echo or
joke are many apply Pacifica for which I
think I am the best suited person that
will also be done in the best possible
manner last is cost reduction because
the third party for him
advertising is if I'm taking the example
of advertising his main four-day is
advertising he specializes in doing that
job alright and he is not doing it only
for me but he's doing it for a lot of
other companies also as a result of
which he is able to reap the benefits of
economies of scale thereby leading to
reduction in cost so three advantages I
am talking about
your is focusing attention quest for
excellence cost reduction another
advantage is that it is nowadays
outsourcing is also adding a great deal
to the GDP of our country sixty percent
Gemara GDP ITN able sectors rather right
limitations the limitations first one is
confidentiality when you are sharing
important information with the third
party what is the guarantee kevo
information leak nahi huggy what is a
guarantee keep authority basically how
re information hamari competitor is
going to either data fine so that is
always or risk of your trade secrets or
business secrets being leaked to your
competitors then is your sweat shopping
take care now sweat shopping generally
people outsource because other up they
cook it may us k au k kk teh sorry
processes your yah happy carry out what
they call centers may take a wise that
so and we people think that we are
you