Define the following terms (a) Outsourcing " " (b) Quota
In today's dynamic businesses environment, companies are specialising in their core competency and divesting non-core businesses. In this context, one may city decision of Hindustan Unilever Limited in divesting non-core businesses of chemicals and seeds. Some companies are outsourcing their non-core activities like share-transfer management and advertising to outside agencies. So much so, that even core processes such as R&D, manufacturing and marketing are being outsourced today. Thus, significance of 'Business Process Outsourcing' (BPO) and 'Knowledge Process Outsourcing' (KPO) has increased. (a) Identify the significance of principle of manugement highlighted above. (b) Identify and explain the principle of management followed by the companies which are outsourcing their non-core and core activities.
Why is outsourcing necessary ? Describe the benefits of outsourcing .
