When coca cola contracted with capgemini to provide accounting and financial services, coca cola was using strategy of outsourcing.
Outsourcing is a business practice of hiring any party outside the company to perform different services or create goods which were traditionally performed in house by the employees and staff of the company by its own.
Practice of outsourcing is usually undertaken by companies as a cost-cutting measure. It also affects a wide range of jobs which ranges from customer support to manufacturing to the back office.
Outsourcing service was first recognized as a business strategy in 1989. However the practice of outsourcing is getting considerable controversy in many countries due to losing jobs.
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