Outsourcing is the process of contracting an existing business process which an organization previously performed internally to an independent organization , where the process is purchased as a service .
Reengineering is a multi disciplinary approach to make fundamental changes in how functions , activities , operations , and procedures are performed within a business . The purpose of such change is to improve earnings , productivity , and performance .
The focus of Reengineering is to continually improve business procedures whereas the focus of outsourcing is to reduce costs , lower risk , simplify and streamline functions , concentrate on core activities and competencies .
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