The correct option is Outsourcing.
Explanation
In the post-reform economic landscape, firms adopt various strategies to improve efficiency and reduce costs. One such strategy involves restructuring internal operations by delegating specific activities to external entities.Analysis of Options:
- Informalisation Informalisation: Incorrect. This refers to a trend where the proportion of the workforce in the informal sector increases, or where workers in the formal sector lose social security benefits. While the practice described in the question may contribute to informalisation, the specific act of transferring work is not termed informalisation.
- Casualisation Casualisation: Incorrect. This describes the increase in the proportion of casual labourers (workers hired on a day-to-day basis without job security) within the total workforce. It pertains to the nature of employment contracts rather than the organizational restructuring of tasks.
- Outsourcing Outsourcing: Correct. Outsourcing is the practice where a company contracts out certain tasks or functions-previously performed in-house-to external agencies, small enterprises, or individuals. This allows the firm to close specific specialist departments and focus on core competencies while reducing operational costs.
- Disinvestment Disinvestment: Incorrect. This refers to the sale or liquidation of assets, specifically the sale of government equity in Public Sector Enterprises (PSEs) to the private sector or the general public.
Key Takeaway:
Outsourcing is the process of contracting out non-core business activities to third parties to achieve cost efficiency, often resulting in the transfer of work from large firms to smaller enterprises or individuals.