Outsourcing is the practice of contracting out specific business processes, tasks, or functions to external service providers. Organizations outsource to reduce costs, access specialized skills, and focus on core competencies. Outsourcing can involve a wide range of functions, including customer support, IT services, manufacturing, and more.
For example, a company may outsource its customer service operations to a call center located in another country to provide around-the-clock support. Outsourcing can be an effective strategy for cost reduction and gaining access to a global talent pool.
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