Outsourcing also can involve the purchasing of components from another source, such as components for computer equipment. Having determined which services are noncore to the organisation, the outsourcing team should then identify which of these noncore services are operational e. Before the word came into widespread use, people talked about farming or contracting things out. Outsourcing always involves getting another business or organisation to provide the service for you. However, the outsourcing of noncore functions can often be completed quickly, efficiently, and costeffectively by an outside specialist. The term is a semi portmanteau in that it combines the words crowd and outsourcing. Outsourcing noun meaning, pronunciation and more by macmillan dictionary. Its the practice of sending certain job functions outside a company instead of handling them in house.
Outsourcing is a practice usually undertaken by companies as a costcutting measure. Business and industryoutsourcing definition of business. Companies having strengths in other areas may contract out data processing, legal, manufacturing, marketing, payroll accounting, or other aspects of their. For instance, an insurance company might outsource their claims processing program or a bank might outsource their. Internal outsourcing is the purchase by a company of services or material inputs from a source located in another firm within the same country. In this lesson, youll learn what outsourcing is and some of its benefits as well as look at an example. International outsourcing is defined as the purchase by a company of services or material inputs from a source located in another country. Outsourcing definition and meaning define outsourcing. The business has been cutting costs through increased. Outsourcing definition of outsourcing by medical dictionary.
Outsourcing allows you to delegate all those pesky but essential daily tasks and concentrate on core processes that would help your business grow. This is usually considered when purchasing the product or labor to build the product is cheaper or more cost effective than manufacturing it inhouse. The practice of having certain job functions done outside a company instead of having an inhouse department or employee handle. The transferring of certain business functions from internal staff to outside contractors. For example, to assess it performance, a research firm or advisor may collect the clients data. It is important to note that outsourcing is not the same thing as offshoring the two terms are commonly, but wrongly taken as meaning the same thing. Outsourcing simply means that a person, or even a machine, will perform an operation for you. Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed inhouse by. Outsourcing noun definition and synonyms macmillan. Outsourcing definition outsourcing became a popular buzzword in business and management in the 1990s. Business and industryoutsourcing synonyms, business and industryoutsourcing pronunciation, business and industryoutsourcing translation, english dictionary definition of business and industryoutsourcing. Outsourcing meaning in the cambridge english dictionary. The contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company holds competitive advantage.
Outsource definition is to procure something, such as some goods or services needed by a business or organization from outside sources and especially from foreign or nonunion suppliers. Most businesses have always outsourced some of their activities. One of the leading outsourcing attorneys in the united states, ms. It was a welcome addition to the business vocabulary as, prior to the introduction of the term, the domestication decision involved a decision to either produce inhouse or a decision to produce outside. Through outsourcing agreements, the client company hires separate companies to perform specific tasks in the valuechain on its behalf. Outsource definition of outsource by merriamwebster. Outsourcing involves subcontracting parts of a companys valuechain, i. Change your default dictionary to american english. Business process outsourcing bpo is a method of subcontracting various businessrelated operations to a third party. Outsourcing definition and meaning collins english.
If a company outsources work or things, it pays workers from outside the company to do the work or supply the things. Outsourcing is a business model that has been around for ages. Outsourcing definition entrepreneur small business. Outsourcing definition entrepreneur small business encyclopedia. Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed. Outsource definition for englishlanguage learners from. Business process outsourcing definition in the cambridge. Definition and synonyms of outsourcing from the online english dictionary from macmillan education.
Popular outsourcing books meet your next favorite book. Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally, and sometimes involves transferring employees and assets from one firm to another the term outsourcing, which came from the phrase outside resourcing, originated no later than 1981. Dictionary of business and management oxford reference. Outsourcing is the movement of a function inside a company to an entity outside it. In the black book of outsourcing, outsourcing gurus doug brown and scott wilson demystify the subject and show executives and staffers alike how to successfully assess and implement outsourcing, communicate internally and with partners, measure. Melby is the coauthor of information technology outsourcing. Outsourcing dictionary definition outsourcing defined yourdictionary. The new it outsourcing landscape from innovation to cloud services by willcocks, leslie p. Outsourcing is usually applied to those services which support the organisation in the delivery of its core business. Glossary of terminology and definitions for business and management.
Outsourcing article about outsourcing by the free dictionary. Outsourcing is a practice in which an individual or company performs tasks, provides services or manufactures products for another company functions that could have been or is usually done inhouse. Ever since humans settled down from their nomadic ways and began domesticating animals and planting crops, the need for specialized services arose, and these contracted services became the first forms of outsourcing. Components sometimes can be purchased for less than it would cost for companies to manufacture those components themselves, and the components may be of higher quality. Even in an everyday household in america, you can find forms of outsourcing for example, the gardening service. Outsourcing in managerial accounting is the decision to buy a product or pay someone to make it for you instead of making the product for yourself. Some of the acronyms related to bpo business process outsourcing are. She was recently recognized by chambers usa as one of the nations leading lawyers for business process outsourcing. For example, a company may outsource its accounting to another firm, which would then prepare and provide appropriate statements for the company. Definition of outsource written for english language learners from the merriamwebster learners dictionary with audio pronunciations, usage examples, and countnoncount noun labels. We use cookies to enhance your experience on our website, including to provide targeted advertising and track usage. Outsourcing definition in the cambridge english dictionary.
Globalization poses challenges to todays businesses. Definition of outsourcing noun in oxford advanced learners dictionary. Outsourcing the practice of a company hiring a different company to supplement its services at a lower cost. To keep costs down, many business rms have turned to outsourcing. Outsourcing definition of outsourcing by the free dictionary. For example, businesses of all sizes have used the services of professionals like management consultants, auditors and lawyers rather than having them employed on the payroll. Increasingly, corporate clients are seeking to outsource the management of their facilities. Outsourcing is a strategy that can benefit a companys bottom line. Core skills, as a general rule, should be kept inhouse. Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed inhouse by the companys own employees and staff.
This is the british english definition of outsourcing. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more. Definition of outsource verb in oxford advanced learners dictionary. It contains us business terms, general management concepts e. It is a common practice that businesses use to cut expenses, gain access to employees with a. The practice of having certain job functions done outside a company instead of having an inhouse department or employee handle them. They recently signed a fiveyear outsourcing contract with the company. Outsource definition and meaning collins english dictionary. The contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company.
Outsourcing definition, of a company or organization to purchase goods or subcontract services from an outside supplier or source. Outsourcing purchasing a significant percentage of intermediate components from outside suppliers. Business process outsourcing bpo is the act of giving a thirdparty the responsibility of running what would otherwise be an internal system or service. Outsourcing works best when used for noncore skills. Outsourcing is an agreement in which one company hires another company to be responsible. List of books and articles about outsourcing online. If a company outsources work or things, it pays workers from outside the company to do. Outsourcing, is the process of utilizing third party workers for traditionally inhouse business tasks. The term is from jerry b harveys book the abilene paradox and other.
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