Which of the following is an example of "Outsourcing"?
Answer & explanation
Correct answer: option 1
The correct answer is option 1: Krishna Limited (India )giving financial services to Minishua Corp. ( U.S.A.)
Outsourcing involves a company contracting out a business process or service to another company, often in a different country. In this case:
- Krishna Limited (India) providing financial services to Minishua Corp. (U.S.A.) is an example of outsourcing, as it involves a company in one country providing services to a company in another country.
The other options are not examples of outsourcing:
- Raju working in a factory in India is not outsourcing but rather local employment.
- Kinsey Ltd. (U.K.) giving legal advice to Bode Ltd. (U.K.) is an example of a domestic service rather than outsourcing.