What Is The Purpose Of Outsourcing?

Hey Pallavi
Outsourcing is mainly done to reap financial benefits in the form of low wage rates, low technology cost or to save man hours and cost of energy being used. Some companies outsource their peripheral business functions to be able to focus on their core business function.
For example, a company whose core business function is manufacturing soap, may outsource packaging function to a third party if that is financially beneficial.