OUTSOURCED SERVICE Meaning and
Definition
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An outsourced service refers to a business strategy where a company or organization decides to delegate and transfer specific activities, functions, or processes to external third-party service providers. These service providers are typically experts in a particular field and are hired by the company to perform tasks that were previously handled internally. The main objective of outsourcing services is to achieve cost efficiencies, improve productivity, and focus on core competencies.
Outsourced services can range from simple administrative tasks, such as payroll processing and data entry, to more complex functions like customer support, information technology maintenance, or manufacturing processes. The decision to outsource these services is typically driven by the need to reduce overhead costs, gain access to specialized knowledge and skills, or to meet operational demands during peak periods.
When outsourcing services, companies often enter into contractual agreements outlining the terms, conditions, and expectations. These agreements establish the scope of work, service level agreements (SLAs), performance metrics, and data security requirements. The third-party service provider is responsible for meeting these agreed-upon standards and delivering the services within the specified timeframes.
Outsourced services can be carried out domestically or internationally, with offshore outsourcing being a common practice to leverage lower labor costs in countries with lower wages. However, there can be challenges associated with language barriers, cultural differences, and data security risks when outsourcing services to foreign providers.
Overall, outsourcing services provide numerous advantages to companies in terms of flexibility, efficiency, and cost savings, while allowing them to focus on their core business activities and achieve strategic goals.
Common Misspellings for OUTSOURCED SERVICE
- iutsourced service
- kutsourced service
- lutsourced service
- putsourced service
- 0utsourced service
- 9utsourced service
- oytsourced service
- ohtsourced service
- ojtsourced service
- oitsourced service
- o8tsourced service
- o7tsourced service
- oursourced service
- oufsourced service
- ougsourced service
- ouysourced service
- ou6sourced service
- ou5sourced service
- outaourced service
- outzourced service
Etymology of OUTSOURCED SERVICE
The etymology of the word "outsourced service" can be understood by breaking it down into its components: "outsource" and "service".
1. Outsource: The term "outsource" originated in the United States in the late 1970s. It is a combination of the words "outside" and "resource". The word "resource" refers to any asset or service that a company possesses. "Outsource" refers to the practice of contracting or obtaining goods, services, or tasks from an external or outside source rather than producing it within the organization itself. This term gained popularity as companies began to utilize external resources to improve efficiency and cut costs.
2. Service: The word "service" has its roots in Latin. It comes from the Latin word "servitium", which means "the condition of a slave".
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