What is business outsourcing?

Business outsourcing is a form of outsourcing. Outsourcing refers to an enterprise handing over one or several links in the production or operation process to other (specialized) companies to complete.

Outsourcing means that an enterprise entrusts non-core business to a cooperative unit to gain a greater competitive advantage than simply using internal resources. As a management strategy, business outsourcing is a business form in which a company (called contractor) signs contracts with other external enterprises (called contractors) to outsource some businesses or functions traditionally handled by internal personnel to professional and efficient service providers. Business outsourcing is considered as an effective means for enterprises to introduce and use external technology and talents to help enterprises manage the end-user environment.

Business outsourcing has developed rapidly in recent years, which is popular all over the world, and multinational companies are also enjoying it. In essence, an enterprise contracts a part of its internal business to an external specialized agency, which is to reposition itself, reconfigure various resources of the enterprise, concentrate resources in the field that best reflects the comparative advantage of the enterprise, shape and play its unique core business that is difficult to be imitated or replaced by other enterprises, build its own competitive advantage, and obtain the core competitiveness that enables the enterprise to develop continuously. Therefore, enterprise outsourcing has become an important official strategy for enterprises to create and maintain long-term competitive advantages.