Definition of Outsourcing

What is "outsourcing"? What is the definition of the term "outsourcing"?

"Outsourcing" is the act of hiring an outside firm to handle some sort of task that would otherwise be performed within a company.

For instance - a large online e-commerce company decides to "outsource" their phone customer service operations to a firm that specializes in customer service. The main advantage of outsourcing to this specialist? The e-commerce company will realize cost savings by outsourcing to this firm.

Definition of Outsourcing - Financial Dictionary - Economics"Outsourcing" has become a fairly controversial topic over the past number of years, especially in the United States.

Many US-based companies have realized significant cost savings by outsourcing jobs to countries such as India and China where the cost of labor is significantly lower. This has infuriated many in the country, as this outsourcing has come at the expense of millions of American jobs.

A number of firms have announced in recent months that they are going to be stopping the practice of outsourcing and bringing jobs back to the United States. There are a few reasons behind this: 1) labor isn't as cheap in places like India and China as it used to be 2) bringing jobs back is a savvy PR move

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