Outsourcing — Syllabus
ICSE · Class 12 · Business Studies
What Outsourcing covers in ICSE Class 12 Business Studies: 4 topics, for the 2026-27 session. Part of the ICSE Class 12 Business Studies syllabus.
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Topics in Outsourcing
Concept of Outsourcing
- Outsourcing means contracting out certain business functions, processes, etc. to an outside agency or third party.
- It is done to take advantage of the outside agency's expertise and experience.
- To outsource means to engage the services of an outside agency to manage, operate and deliver one or more business functions or processes.
Parties Involved in Outsourcing
- Outsourcing involves three parties: the outsourced, the outsourcer, and the service provider.
- The outsourced is the external agency which agrees to perform certain functions and processes.
- The outsourcer is the organisation which engages an external agency to perform some functions and processes.
Advantages and Disadvantages of Outsourcing
- Outsourcing offers cheaper services because dealing in one kind of service on a large scale makes cheap service available.
- Specialisation in a single service has a positive effect on quality.
- Outsourcing increases the efficiency of users by letting them concentrate on their major business.
Business Process Outsourcing BPO
- BPO stands for Business Process Outsourcing.
- Business Process Outsourcing is the delegation of one or more IT enabled business processes to a third party that owns, administers and manages the business process according to a defined set of metri
- BPO is the contracting out of a company's in-house process to a preferred vendor with a high quality level in a particular task area.
Key Concepts
Central concept: Outsourcing as a new trend in business
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