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Why do companies need outsourcing services?
Why do companies need outsourcing services?
Outsourcing strategy comes from a transaction cost approach where, as said before, the objective would be delegating tasks to the providers as long as it resulted more cost-effective to do so than doing them in-house.

 

Nowadays, the term “outsourcing” is known by almost all business owners across the United Arab Emirates. Nevertheless, the fact that is widely known doesn´t mean the term has only been learned in the last few decades. In reality, the knowledge of the term for outsourcing goes back as far as 1970-1980 being able to mean various things such as asking for help from an advisor, delegating tasks to someone with higher ability, etc.

Even though it seems difficult to learn, in reality, the meaning of the term “outsourcing” could not be easier. Simply put, outsourcing means relegating any kind of task to an advisor or someone with higher abilities to do it than yourself. On a business scale of things, outsourcing means hiring a 3rd party provider to perform tasks or other services for your company in order to save time or effort doing them themselves. This applies to various types of services such as IT services or payroll services.