Definition of Outsourcing:
Outsourcing was first recognized as a business strategy in 1989 and became an integral part of business economics throughout the 1990s. The practice of outsourcing is subject to considerable controversy in many countries. Those opposed argue that it has caused the loss of domestic jobs, particularly in the manufacturing sector. Supporters say it creates an incentive for businesses and companies to allocate resources where they are most effective, and that outsourcing helps maintain the nature of free-market economies on a global scale.
The contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company holds competitive advantage. Companies having strengths in other areas may contract out data processing, legal, manufacturing, marketing, payroll accounting, or other aspects of their businesses to concentrate on what they do best and thus reduce average unit cost. Outsourcing is often an integral part of downsizing or reengineering. Also called contracting out.
Obtain (goods or a service) by contract from an outside supplier.
Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff. Outsourcing is a practice usually undertaken by companies as a cost-cutting measure. As such, it can affect a wide range of jobs, ranging from customer support to manufacturing to the back office.
Synonyms of Outsourcing
Temporary, Part-time, Impermanent, Freelance
How to use Outsourcing in a sentence?
- Outsourcing is also used by companies to dial down and focus on the core aspects of the business, spinning off the less critical operations to outside organizations.
- To the chagrin of many older Americans, many US based companies are now outsourcing their production to countries in the third world which means that it is becoming ever difficult to buy American made products.
- There can be no question of outsourcing components from other countries.
- The radiology department started outsourcing all of their jobs, which really angered the union and all of the doctors who had previously worked for them.
- By outsourcing all of their customer service jobs to India, the company was able to cut back on payroll costs and use some of the saved money to increase the marketing budget.
- On the downside, communication between the company and outside providers can be hard, and security threats can amp up when multiple parties can access sensitive data.
- Companies use outsourcing to cut labor costs, including salaries for its personnel, overhead, equipment, and technology.
Meaning of Outsourcing & Outsourcing Definition