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The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is Outsourcing
What is Outsourcing?
Outsourcing is a contract in which one company contracts another company to perform a planned or existing function that is or could be done internally, and it may involve the movement of workers and assets from one firm to another.
Companies utilize outsourcing to reduce labor expenditures such as employee pay, overhead, equipment, and technology. Companies also utilize outsourcing to scale back and focus on the core components of their business, offloading less vital processes to third-party entities.
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