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