Question

Techup inc., a manufacturer of computer chips, hires an external specialist agency to perform background checks of its new employees. by doing this, techup ensures quality service and saves both time and labor costs. this scenario illustrates the concept of _____.

Answer 1

This scenario illustrates the concept of "outsourcing".

Outsourcing (likewise in some cases alluded to as "contracting out") is a business practice which is utilized by organizations and companies to decrease costs or enhance effectiveness by moving undertakings, tasks, occupations or procedures to an outside contracted third party for a specific time frame. The functions that are contracted out by the outsider or third party can be performed either on location or offsite of the work.