Companies use outsourcing to cut labour costs, including salaries for their personnel, overhead, equipment, and technology.
Outsourcing is also used by companies to dial down and focus on the core aspects of the business, spinning off the less critical operations to outside organizations.
Outsourcing can help businesses reduce labour costs significantly. When a company uses outsourcing, it enlists the help of outside organizations not affiliated with the company to complete certain tasks. This ultimately enables the company that chose to outsource to lower its labour costs.
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