Which of the following is the motive behind outsourcing ?

Both 1 and 2

The correct answer is Option 3: Both 1 and 2

Outsourcing refers to the practice of hiring external organizations or individuals to perform tasks, handle operations, or provide services that were previously done in-house.

The main motives behind outsourcing are:

1. Reduce Cost – Outsourcing often helps companies save money by taking advantage of lower labor costs in other regions or countries.

2. Improve Efficiency – By outsourcing non-core activities to specialists or firms with expertise, businesses can focus on their core functions and improve overall efficiency.

Outsourcing or contracting out is giving work to an outside agency with the motive to improve efficiency and to reduce costs.