Outsourcing - GCSE Business Definition

Outsourcing is the practice of hiring external businesses or individuals to perform tasks or services that could be undertaken within the business. In GCSE Business , students learn that businesses may outsource various functions such as manufacturing, customer service, or IT support so they can focus on their core activities. They can benefit from the expertise and economies of scale that specialised service providers offer whilst improving efficiency, cost savings, and access to global skills. However, challenges such as reduced control over the outsourced services and potential job losses in the company's local area would be a concern.