OUTSOURCING Meaning and
Definition
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Outsourcing is a business practice where a company or organization entrusts certain tasks, functions, or processes to an external entity, usually located in a different geographic location or country. It involves the delegation of specific operations or services to specialized third-party contractors or service providers, rather than handling them in-house.
In this arrangement, the primary company, often referred to as the "client" or "outsourcer," contracts the external firm, known as the "vendor" or "outsourcing partner," to perform the designated tasks or services. These can range from non-core activities like customer support, data entry, or IT maintenance, to more complex functions such as accounting, software development, or manufacturing. The main purpose of outsourcing is primarily to reduce costs, enhance efficiency, benefit from expertise, or focus on core competencies.
Outsourcing may involve both onshore and offshore arrangements. If the external entity is located within the same country as the client, it is considered onshore outsourcing. Conversely, when the tasks are assigned to an entity in a different country, it is referred to as offshore outsourcing, often leveraging factors like lower labor costs or specific expertise available in those regions.
While outsourcing offers various advantages such as cost savings, access to specialized skills, increased flexibility, and expanded market reach, it also poses potential risks such as loss of control, language barriers, quality concerns, or security and confidentiality issues. An effective outsourcing strategy involves careful consideration of these factors, ensuring an optimal balance between cost-efficiency and risk management for the client organization.
Top Common Misspellings for OUTSOURCING *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for OUTSOURCING
Etymology of OUTSOURCING
The word "outsourcing" originates from the combination of two terms: "out" and "source".
The prefix "out" refers to taking something or someone from the inside and moving them to the outside. It implies the action of transferring or relocating.
The term "source" refers to the origin or point of origin of something. In the context of "outsourcing", it refers to the transfer of jobs or tasks from one company (the client or employer) to another external company (the service provider).
Combining these two terms, "outsourcing" describes the process of transferring business activities, tasks, or jobs from an internal source (within a company or organization) to an external source (a third-party company or service provider).
Conjugate verb Outsourcing
CONDITIONAL
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FUTURE
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FUTURE PERFECT
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