Outsourcing is a force behind the virtual organization movement. Outsourcing is simply obtaining work previously done by employees inside the company from sources outside the company. If someone has specialized in an activity which is not strategically critical to our business – and is able to do that cost effectively, it is better to get it from outside.
The organization gets benefitted in the form of excellent quality, reliable supply, and rock bottom price. It can also focus exclusively on doing what it is good at – thereby enhancing its own competitive advantage.