Final answer:
Outsourcing is hiring external contractors to perform tasks externally, often done to cut costs and access skills. Computing tasks such as software development and customer service are well-suited for outsourcing. Countries like India and the Philippines are major BPO destinations due to cost-efficiency and skilled labor.
Step-by-step explanation:
Outsourcing is the practice of hiring outside contractors, sometimes abroad, to perform tasks that a company once handled internally. It has become increasingly common as companies seek cost savings and access to skills that might not be readily available in-house. Common computing tasks suited to outsourcing include software development, customer service, data processing, human resources, and accounting.
Countries like India and the Philippines have become major destinations for business process outsourcing (BPO) due to their skilled labor base, fluency in English, and lower employment costs. This trend is driven by the global economy seeking efficiency and lower operational expenses. With the advent of high-speed communication links, tasks that can be conducted over the Internet or telephone are easily outsourced to these and other countries.
Outsourcing not only enables companies to remain competitive in the global marketplace, but it also leads to shifts in labor demands across countries, allowing corporations to focus on core business areas while contracting out non-core activities.