Definition of Outsourcing

Outsourcing refers to the execution of tasks that are closely related to an organization's operations but are independent of it—that is, standalone activities—through a service provider specialized in that specific field. Typical examples include IT and accounting services.

What Is Outsourcing?

Outsourcing is a business strategy in which a company delegates certain activities or services to external firms. This practice enables companies to reduce their costs, increase efficiency, and better focus on their core activities. Over the past few decades, outsourcing has become increasingly popular and is now widespread across many industries.