The main reason for the company decide to choose outsourcing services is to reduce
costs and improve product quality through outsourcing to improve the company’s
business efficiency, thus increasing the competitiveness of the company. (Hendry,
1995). Therefore, reduce cost is one of the benefit for the company to outsourcing
their business activity. Next, because of the influences of globalization, the market
participants will be more and more, in such a competitive market, companies can
survive is to meet the market demand and this is the only way for companies to
maintain the lowest possible cost, thus to increasing the company competitiveness, so
in such a market environment, companies outsourcing has become more and more
important. (rokcoljana, 2019)
The main factor for company’s success in the competition is the competitiveness of its
products and which is directly affected by price and quality. (Nikpour, 2017). The
main factor affecting the price is the cost of goods that produced by the company,
which is why the company will transfer the production process to one side so that the
