Basic Principles
The basic concept of outsourcing arises from specialization of function. Economic participants have an incentive to use outside resources to perform activities traditionally handled by internal staff and resources, where there are clear benefits. Reduced to its essence, outsourcing is a dynamic management strategy that transfers non-core functions to specialized, efficient service providers. This allows management to focus on its core competencies and save money while introducing faster, more accurate, automated processes. Outsourcing is not appropriate for every business function, however.