Engaging external entities to perform specific tasks or functions that were traditionally handled internally is a common business practice. This strategic decision often involves transferring responsibilities, resources, and sometimes personnel to a third-party provider. A typical example would be a manufacturing company contracting with a foreign factory to produce its goods, rather than maintaining its own production facilities.
This practice holds significant implications for cost reduction, efficiency gains, and access to specialized expertise. Historically, companies pursued this route to focus on core competencies, streamline operations, and improve their competitive advantage. The ability to leverage global talent pools and innovative technologies further contributes to its enduring appeal.
