Hi Maddypawar,Receive the final paper for approval. Thank you

Running head: THE CONCEPT OF OUTSOURCING

Outsourcing
Name
Institutional Affiliation

1

OUTSOURCING

2
The Concept of Outsourcing in Business

The concept of Outsourcing is one of the current advancements by most businesses. The
practice entails an agreement with another company or person with specific intentions. Such
motives may get driven by the desire of the business to stay ahead of the competition, reduce its
cost of production, and embrace technological innovations that would otherwise be costly if
sourced internally (Dolgui & Proth, 2013). Moreover, the strategy enables organizations, which
are not wholly self-sufficient to subcontract those functions for which they lack internal
competency. Some studies reveal that the concept of outsourcing assume various such as
information technology outsourcing (ITO), where the company subcontracts its computer or
internet related work. The other form of this practice comprises of business process outsourcing
(BPO), where the organization outsources work that does not require much technical skills. The
concept of outsourcing does not only enhance the operation of the business but also improves its
profitability. Due to the increased popularity of this approach, it is, therefore, essential to explore
the compelling reasons for the practice and its impacts.
Reasons for Outsourcing ITO
The underlying reason for outsourcing becomes propagated by the inability of businesses
to possess all the resource required to avail complete products or services to the market. For
instance, some studies reveal that globalization has become a facilitating factor for offshoring,
especially for information technology services (Gonzalez, Gasco & Llopis, 2010). According to
the...