Contracting formerly internal tasks to an external organization
Not to be confused with Offshoring.
Outsourcing is the act of a company relying on an external provider for a business process that otherwise would be internal. Generally, it involves an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise would be carried out internally,[1][2] a.k.a. in-house,[3]
Outsourcing 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 at a time when industrial jobs in the United States were being moved overseas, contributing to the economic and cultural collapse of small, industrial towns.[4][5][6]
The concept, which The Economist says has "made its presence felt since the time of the Second World War",[7] often involves the contracting out of a business process (e.g., payroll processing, claims processing), operational, and/or non-core functions, such as manufacturing, facility management, call center/call center support.
The practice of handing over control of public services to private enterprises (privatization), even if conducted on a limited, short-term basis,[8] may also be described as outsourcing.[9]
Outsourcing includes both foreign and domestic contracting,[10] and therefore should not be confused with offshoring which is relocating a business process to a another country but does not imply or preclude another company.[11] In practice, the concepts can be intertwined, i.e. offshore outsourcing, and can be individually or jointly, partially or completely reversed,[12] as described by terms such as reshoring, inshoring, and insourcing.
^"Oursourcing". Britannica.com. February 29, 2024.
^Ian McCarthy; Angela Anagnostou (2004). "The impact of outsourcing on the transaction costs and boundaries of manufacturing". International Journal of Production Economics. 88 (1): 61–71. CiteSeerX 10.1.1.468.9139. doi:10.1016/s0925-5273(03)00183-x.
^Smale, T., In-House or Outsourced? How Do You Decide?, Entrepreneur, published 1 March 2017, accessed 24 December 2022
^Stuart Rosenberg (2018). The Global Supply Chain and Risk Management. Business Expert Press. ISBN 978-1-63157-959-2.
^Outsource 1979, outsourcing 1981: Organizing Identity, Persons and Organizations After Theory. CTI Reviews. 2016. ISBN 978-1-4970-4215-5.
^OED
^Adrian Victor; Alexandru Dumitru Bodislav. "Outsourcing. The Concept" (PDF).
^"Judge Rebukes Government for Outsourcing Internal Investigation of LIBOR rigging". June 28, 2019.
^Dave Jamieson (July 1, 2013), "Public Interest Group Challenges Privatization Of Local, State Government Services", The Huffington Post, retrieved July 1, 2013 "Privatization Battles Loom". HuffPost. July 2013. Archived from the original on December 11, 2013. Retrieved August 26, 2013.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
^Hira, Ron; Hira, Anil (2005). Outsourcing America: What's Behind Our National Crisis and how We Can Reclaim American Jobs. American Management Association. pp. 67–96. ISBN 978-0-8144-0868-1.
^Davies, Paul. What's This India Business?: Offshoring, Outsourcing, and the Global Services Revolution. London: Nicholas Brealey International, 2004. Print.[page needed]
^Elizabeth Corcoran (April 28, 2004). "Dell moves outsourced jobs back to U.S. shores". NBC News. customers were not happy with ...
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