LITERATURE REVIEWOUTSOURCING: Outsourcing is a strategic activity in which some of the organization's internal activities are delegated to external companies for various reasons, including:- To better focus the organization - To exercise better control over operational costs - gain more flexibility to define the required service readily available - maintain the same level of competence over a period of time Usually companies to which activities are outsourced are specialized in their area of ​​work and thus the parent company business gets the benefit of getting the job done through competent employees. Therefore, outsourcing offers companies a competitive advantage that can be easily sustained without much effort. ADVANTAGES: Reduced expenses: Since outsourcing companies are specialized companies, they perform tasks better, cheaper and faster than companies that perform these tasks in-house. Cost reductions can also be achieved by combining activities. Specialized knowledge and skills can be provided by outsourcing companies, thus eliminating the need to maintain such knowledge in-house where it can only be used occasionally. Saves management time and efforts: Management can shift their time and efforts away from transactional activities and focus on the core competencies that distinguish the organization from its competitors. Repetitive problems become the responsibility of the outsourcing company while keeping internal management involvement to a minimum. Increased organizational skills: As time spent on day-to-day transactional tasks is reduced, you can spend more time and effort on transformation activities that directly support your core competencies...... half of the document ...... successfully delivered . Level 6: Highly Confidential Activities (HCA) Secrecy is required in carrying out some human resources management activities. Layoffs, plant closings and restructurings are examples of activities that must be kept confidential. These types of activities, obviously, have a much lower potential to be outsourced than those that do not require secrecy or confidentiality. Level 7: Management Decision Activity (MDA) Some human resources management activities require the direct and specific involvement of top management. The structure of the human resources department or the direction that the human resources function must take are examples of activities that require direction from top management. There is little opportunity to outsource the decisions that need to be made by the executive level of an organization's management.