Resource Mobilization — Entrepreneurship STD 11 Commerce — Question

Today is an era of specialization. Competitive advantage can be realized only when businesses become more efficient in their operations and reduce the cost of their inefficiencies. Even the most successful companies have realized that:

1. They cannot do justice to all aspect of business – production, distribution, marketing, legal, researching etc.
2. They do not have ample expertise, resources, time and energy in their hands to meet out the never ending requirements of the enterprise. Thus, either outsourcing or availing of professional services from outside the firm, has become a major trend in human resources over the past decade.

Although there is no single, standard legal definition of Professional Services, most courts agree the phrase refers broadly to a calling, occupation or business that:

• Involves specialized education, knowledge, labour, judgment and skill.
• Is predominantly mental or intellectual.
• Has professional workforce.
• Good capital resources intensity.
• Has proven expertise in the field.
• Expects compensation in return for the work done.