If Dixons Electronic outsource their total development, what risk will they take? What types of organisations or some developments that are out there should not be outsourced? Outsourcing is defined as taking a companies products, services or functions and then paying an external organisation to handle and control them. Transfers to suppliers are made from the operational control, which include services. The aspect of outsourcing is used in order for the organisation to save money, improve quality, and also free the resources from the other activities they have. In the current environment companies can no longer assume me that all organisational must be provided and managed internally. Advantages of outsourcing in the sense of competitive organisations can be produced when products or services are much more effective and efficient by suppliers from outside. Recently outsourcing has become the definition of elimination of current staff, and new staff overseas are hired which means companies save money on salaries