Definition, synonyms and related words
The transfer of a business function to an external service provider.
"The company decided on outsourcing its customer support team to a firm in India to cut operational costs."
In plain English: Outsourcing is when a company hires another business to do some of its work instead of doing it themselves.
"The company decided to outsource its customer service calls to a team in another country."
Usage: Outsourcing is the practice of hiring an outside company to perform tasks that were previously done in-house by your own employees. It is used as a noun to describe this specific business strategy rather than the act of sending something out for repair or disposal.
present participle of outsource
"The company's outsourcing has resulted in a significant reduction of local jobs."
In plain English: Outsourcing means hiring someone else to do a job that your company could do itself.
"The company decided to outsource its customer service calls to a firm in another country."
Usage: Use outsourcing to describe the act of hiring an external company to perform tasks that were previously done in-house by your own employees. This verb is commonly used in business contexts when a firm decides to delegate specific functions like manufacturing or customer support to another organization.
Derived from English, this term combines "out" with "sourcing," originally referring to obtaining materials or services from an external provider rather than within one's own organization. It entered common usage in business contexts during the late 20th century to describe contracting work out to third-party specialists.