The-definition.com

Definition

Outsourcing

Outsourcing means having outside vendors supply services (such as benefits management, market research, or manufacturing) that the company’s own employees previously did in-house. 

Outsourcing is the practice of one organization contracting with another organization to provide services or products of a major function or activity.

Obtaining work previously done by employees inside the companies from sources outside the company. Outsourcing, then, is acquiring an activity, service, product necessary to provide a company’s products or services from ”outside” the people or operations controlled by that acquiring company.


Outsourcing is the using outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in-country.

Share it:  Cite

More from this Section

  • Functional organization
    Functional organization is an attempt by management to provide expert technical supervision ...
  • Parochialism
    Parochialism viewing the world solely through one’s own eyes and perspectives and not ...
  • Values-based management
    Values-based management in which the organization’s values guide employees in the way ...
  • Skill-based pay
    Skill-based pay systems reward employees for the job skills and competencies they demonstrate. ...
  • Range of variation
    The acceptable parameters of variance between actual performance and a standard, is called ...