Nebula Co.,a pharmaceutical manufacturing company in the U.S.,enters into a contractual agreement with a firm in India to conduct clinical trials there after discovering that it is more cost effective to conduct clinical trials in India than in the U.S.In this example,Nebula Co.is ______.

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In this example, Nebula Co. is outsourcing. Managers compare the cost of buying professional services outside the firm (outsourcing) to the cost of having company people do them. Work that was previously done by an employee is now often purchased from an independent specialist.

Nebula Co,A Pharmaceutical Manufacturing Company in the U