Outsourcing is an effective cost-saving strategy when used properly. It is
sometimes more affordable to purchase a goods from companies with
comparative advantages than it is to produce the goods internally. An
example of a manufacturing company outsourcing would be Dell buying
some of its computer components from another manufacturer in order to
save on production costs. Alternatively, businesses may decide to
outsource book-keeping duties to independent accounting firms, as it may
be cheaper than retaining an in-house accountant.