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Answer on Microeconomics Question for Jasmine Jackson

Question #45536
the main reason that firms outsource is that?
Expert's answer
Outsourcing can be defined as “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources.: Outsourcing is a strategy by which an organization contracts out major functions to specialized and efficient service providers, who become valued business partners. Sometimes outsourcing involves the transfer of employees from the company to the outsourcing company. 
Why do companies outsource? Here are some common reasons: 
* Reduce and control operating costs 
* Improve company focus 
* Gain access to world class capabilities 
* Free internal resources for other purposes 
* A function is time consuming to manage or is out of control 
* Insufficient resources are available internally 
* Share risks with a partner company

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