What is an example of outsourcing? (2023)

What is outsourcing and its examples?

Outsourcing is where a company hires an external firm to conduct certain aspects of its business. In other words, one business hires another to operate part of its operations. For example, Apple outsources the majority of its production to Foxconn which assembles many of its products such as the iPhone.

The best example of outsourcing Brainly is when a U.S. shoe company opens a factory in another country like China and contracts Chinese employees to make the shoes.

Business process outsourcing is the most common type of outsourcing. It refers to contracting any business process to a third-party service provider. This type usually deals with repetitive tasks such as customer support and administrative roles.

Outsourcing describes when a business obtains a product or service from an outside provider, rather than handling it in-house. As a small business, outsourcing allows you to get more done and trust important tasks and processes to professionals, without having to actually grow your full-time team in a significant way.

Reduce and control costs of operation (this usually the main reason). Improve the company's focus. Liberate inner sources for new purposes. Increase efficiency for some time-consuming functions that the company may lack resources for.

Nike has no manufacturing plants of its own but chooses to outsource the work to contractors in the Philippines, Vietnam, China, Indonesia, and Taiwan. There are 500,000 people worldwide involved in the production of Nike footwear.

Does McDonald's outsource?

McDonald's commits to outsourcing for 11 years.

Conclusion. Walmart has portrayed some of the best outsourcing strategies in recent years. Expanding its outsourcing partners to India to include IT outsourcing will enable the company to expand its operations while at the same maintaining low costs.

Outsourcing is a common practice of contracting out business functions and processes to third-party providers. The benefits of outsourcing can be substantial - from cost savings and efficiency gains to greater competitive advantage.

However, offshoring is when a company sends in-house jobs to be performed in another country. An example of offshoring is for a United States-based company to produce their goods in Mexico. Both of offshoring and outsourcing ultimately save companies money but they reduce costs in very different ways.