What is Outsourcing?
A definition of Outsourcing
“Outsourcing is the business practice of hiring external firms to handle tasks typically performed internally, allowing companies to focus on core activities and achieve cost savings.”

Business Glossary > What is Outsourcing?
Examples of Outsourcing in a Sentence:
Our company decided to outsource IT support to improve efficiency.
The firm is outsourcing its customer service operations to reduce expenses.
Outsourcing manufacturing has helped us scale production without incurring high costs.
Why is Outsourcing Important in Business?
Outsourcing matters because it enables companies to focus on their core competencies, reduce operating costs, and access expert services without maintaining them in-house. This strategic approach can lead to increased competitiveness and profitability.
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Associated Terms
Here are some associated business terms and synonyms for “Outsourcing”:
- Subcontracting
- Offshoring
- Externalization
IBM Outsourcing
IBM has been at the forefront of IT outsourcing, providing services like cloud computing and IT infrastructure management. By outsourcing these operations, companies benefit from IBM’s expertise, reducing costs and focusing on strategic business areas.
Final Notes on Outsourcing
When businesses consider outsourcing, they should deliberate the following:
- The potential cost savings
- The expertise offered by the external provider
- The impact on internal staff and operations
Understanding these factors aids in making strategic outsourcing decisions.
This has been a definition of Outsourcing meaning.
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