Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more. Outsourcing dictionary definition outsourcing defined yourdictionary. Globalization poses challenges to todays businesses. Outsourcing is a business model that has been around for ages. Companies having strengths in other areas may contract out data processing, legal, manufacturing, marketing, payroll accounting, or other aspects of their. Definition of outsourcing noun in oxford advanced learners dictionary. The transferring of certain business functions from internal staff to outside contractors. Outsourcing definition and meaning collins english. Outsourcing definition of outsourcing by the free dictionary. Definition of outsource verb in oxford advanced learners dictionary. Melby is the coauthor of information technology outsourcing. 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. 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. International outsourcing is defined as the purchase by a company of services or material inputs from a source located in another country.
The practice of having certain job functions done outside a company instead of having an inhouse department or employee handle them. Outsourcing is a strategy that can benefit a companys bottom line. Outsourcing is an agreement in which one company hires another company to be responsible. 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.
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. Outsource definition and meaning collins english dictionary. Outsourcing article about outsourcing by the free dictionary. Having determined which services are noncore to the organisation, the outsourcing team should then identify which of these noncore services are operational e. She was recently recognized by chambers usa as one of the nations leading lawyers for business process outsourcing. Outsourcing always involves getting another business or organisation to provide the service for you.
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. Business process outsourcing definition in the cambridge. Business process outsourcing bpo is the act of giving a thirdparty the responsibility of running what would otherwise be an internal system or service. It is a common practice that businesses use to cut expenses, gain access to employees with a. Before the word came into widespread use, people talked about farming or contracting things out. For instance, an insurance company might outsource their claims processing program or a bank might outsource their. However, the outsourcing of noncore functions can often be completed quickly, efficiently, and costeffectively by an outside specialist. Outsourcing definition outsourcing became a popular buzzword in business and management in the 1990s. Even in an everyday household in america, you can find forms of outsourcing for example, the gardening service. Popular outsourcing books meet your next favorite book. 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 is the movement of a function inside a company to an entity outside it.
Outsourcing definition entrepreneur small business encyclopedia. Outsourcing, is the process of utilizing third party workers for traditionally inhouse business tasks. Outsourcing definition of outsourcing by medical dictionary. The contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company. Outsourcing noun meaning, pronunciation and more by macmillan dictionary. Outsourcing is usually applied to those services which support the organisation in the delivery of its core business. For example, to assess it performance, a research firm or advisor may collect the clients data. Glossary of terminology and definitions for business and management. Outsourcing allows you to delegate all those pesky but essential daily tasks and concentrate on core processes that would help your business grow. If a company outsources work or things, it pays workers from outside the company to do the work or supply the things. 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. The business has been cutting costs through increased. Business and industryoutsourcing definition of business.
For example, a company may outsource its accounting to another firm, which would then prepare and provide appropriate statements for the company. Outsourcing works best when used for noncore skills. Outsourcing meaning in the cambridge english dictionary. List of books and articles about outsourcing online. One of the leading outsourcing attorneys in the united states, ms. Internal outsourcing is the purchase by a company of services or material inputs from a source located in another firm within the same country. Business process outsourcing bpo is a method of subcontracting various businessrelated operations to a third party. The term is from jerry b harveys book the abilene paradox and other. Core skills, as a general rule, should be kept inhouse. 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. Outsourcing definition and meaning define outsourcing. Through outsourcing agreements, the client company hires separate companies to perform specific tasks in the valuechain on its behalf. Most businesses have always outsourced some of their activities.
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. It contains us business terms, general management concepts e. This is the british english definition of outsourcing. Outsourcing the practice of a company hiring a different company to supplement its services at a lower cost.
Outsourcing noun definition and synonyms macmillan. To keep costs down, many business rms have turned to outsourcing. Outsourcing definition, of a company or organization to purchase goods or subcontract services from an outside supplier or source. The contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company holds competitive advantage. Outsourcing simply means that a person, or even a machine, will perform an operation for you. 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. 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. If a company outsources work or things, it pays workers from outside the company and often outside the country to do the work or supply the things.
Change your default dictionary to american english. Dictionary of business and management oxford reference. Outsourcing is a practice usually undertaken by companies as a costcutting measure. Outsourcing also can involve the purchasing of components from another source, such as components for computer equipment.
Outsourcing definition in the cambridge english dictionary. Outsourcing purchasing a significant percentage of intermediate components from outside suppliers. Definition and synonyms of outsourcing from the online english dictionary from macmillan education. Definition of outsource written for english language learners from the merriamwebster learners dictionary with audio pronunciations, usage examples, and countnoncount noun labels. 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. Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed. If a company outsources work or things, it pays workers from outside the company to do.
Outsourcing involves subcontracting parts of a companys valuechain, i. Outsource definition of outsource by merriamwebster. Outsource definition for englishlanguage learners from. Some of the acronyms related to bpo business process outsourcing are. We use cookies to enhance your experience on our website, including to provide targeted advertising and track usage. The term is a semi portmanteau in that it combines the words crowd and 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. Increasingly, corporate clients are seeking to outsource the management of their facilities. The new it outsourcing landscape from innovation to cloud services by willcocks, leslie p. In this lesson, youll learn what outsourcing is and some of its benefits as well as look at an example. Outsourcing has become a major trend in human resources over the past decade. Its the practice of sending certain job functions outside a company instead of handling them in house. They recently signed a fiveyear outsourcing contract with the company. Outsourcing definition entrepreneur small business.
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