200. Outsoucing is the pratice of obtaining from an independent supplier a product or service that a company has previously for itself. Since a company’s chief objective is to realize the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.
B. Successful outsouring requires a company to provide its supplier with information about its products and plans that can fall into the hands of its competitors and give them a business advantage.