How does outsourcing represent a new mode of business?
Outsourcing is contracting out of activities to other companies or service provides, for both core and non-core activities. It represents a new model of business because by outsourcing to other companies, you can take benefit of their expertise and experience to increase your organisational efficiency and improve organisation performance. It helps the organisation in becoming competitive in the market. Non-core activities are outsourced so that you can focus on your core activities and core skills your organisation have.