MBA Managing Outside the Firm

Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff. Outsourcing is a practice usually undertaken by companies as a cost-cutting measure. As such, it can affect a wide range of jobs, ranging from customer support to manufacturing to the back office. On the downside, communication between the company and outside providers can be hard, and security threats can amp up when multiple parties can access sensitive data.