The management dictionary covers over 7000 business concepts from 6 categories. Browse the definition and meaning of more terms similar to outsourcing. The objective of this paper is to provide the classical vocabulary on the topic, a short analysis of the state of the art of global outsourcing in the late 2000s e. Contracting out of a business process to a thirdparty.
One of the leading outsourcing attorneys in the united states, ms. Outsourcing is usually applied to those services which support the organisation in the delivery of its core business. Business process outsourcing bpo is becoming the new revolution as companys of all sizes are seeking to take advantage of this source of competitive advantage. It is a common practice that businesses use to cut expenses, gain access to employees with a special skill set, and obtain other benefits. Besides, one major difference between this book and the many others on this subject, is that it tries to be allembracing, providing business examples from. Outsourcing noun definition and synonyms macmillan. In some cases this is done because it is more costeffective to use outside suppliers or because outside suppliers are more technically competent or can supply a. Mar 22, 2007 one of the leading outsourcing attorneys in the united states, ms. Outsourcing article about outsourcing by the free dictionary. Strategic outsourcing defines the correct approach and implementation for outsourcing, and something as important as the setting up how to proceed and handle issues, once it is in place.
Offshoring is the practice of moving a companys work to a foreign country where labour. Outsourcing always involves getting another business or organisation to provide the service for you. International outsourcing is defined as the purchase by a company of services or material inputs from a source located in another country. Companies having strengths in other areas may contract out data processing, legal, manufacturing, marketing, payroll accounting, or other aspects of their. 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. Glossary of terminology and definitions for business and management. Business process outsourcing bpo is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a thirdparty service provider. The contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company holds competitive advantage. Business process outsourcing definition in the cambridge.
According to the merriamwebster dictionary, outsourcing means. The practice of having certain job functions done outside a company instead of having an inhouse department or employee handle. 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. Outsourcing definition of outsourcing by medical dictionary.
Outsourcing definition entrepreneur small business encyclopedia. Stores using another companies cleaning services for cleaning its floors etc rather then having employees of their own hired as full time cleaners. Offshoring definition and meaning collins english dictionary. Definition of outsource written for english language learners from the merriamwebster learners dictionary with audio pronunciations, usage examples, and countnoncount noun labels. We use cookies to enhance your experience on our website, including to provide targeted advertising and track usage. 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. When a company hires another company to do some aspect of its work for it. Most retailers outsource the bulk of their manufacturing to. Its the practice of sending certain job functions outside a company instead of handling them in house. Dictionary of business and management oxford reference.
It outsourcing article about it outsourcing by the free. In this way outsourcing and privatization are related terms. 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. The main reason for increased outsourcing is normally as a way. Outsourcing, is the process of utilizing third party workers for traditionally inhouse business tasks. Having determined which services are noncore to the organisation, the outsourcing team should then identify which of these noncore services are operational e.
Outsourcing definition of outsourcing by the free dictionary. She was recently recognized by chambers usa as one of the nations leading lawyers for business process outsourcing. Outsourcing is often perceived as referring to contract work being done overseas, but it refers to all contract work. Business process outsourcing bpo is a method of subcontracting various business related operations to a third party. Outsourcing dictionary definition outsourcing defined. Business and industryoutsourcing definition of business. For instance, an insurance company might outsource their claims processing program or a bank might outsource their loan processing system. The term is from jerry b harveys book the abilene paradox and other. Outsourcing is an agreement in which one company hires another company to be responsible. The contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company.
Outsourcing also can involve the purchasing of components from another source, such as components for computer equipment. Jun 25, 2019 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. Outsourcing definition in the cambridge english dictionary. May 02, 2005 outsourcing is a hot topic among business leaders and workers in the global business community. Outsourcing definition entrepreneur small business. In information technology, an outsourcing initiative with a technology. Jan 24, 2017 outsourcing is a business practice in which certain functions required by the business are performed by outside parties on a contract basis rather than the businesss employees. Outsourcing meaning in the cambridge english dictionary. Outsourcing definition outsourcing became a popular buzzword in business and management in the 1990s. The term is a semi portmanteau in that it combines the words crowd and outsourcing. Outsourcing definition and meaning define outsourcing. Outsourcing has become a major trend in human resources over the past decade. Some of the acronyms related to bpo business process outsourcing are.
This book provides a stepbystep approach to understanding the application of business process outsourcing, assessing the bpo opportunity in the company, and then managing the. Business process outsourcing bpo is a method of subcontracting various businessrelated operations to a third party. Outsourcing is a practice in which an individual or company performs tasks, provides services or manufactures products for another company. They recently signed a fiveyear outsourcing contract with the company. The term global sourcing means seeking products and services beyond ones border. 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 is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed.
Outsource definition of outsource by merriamwebster. Outsourcing is a business model that has been around for ages. Nov 11, 2004 business process outsourcing bpo is becoming the new revolution as companys of all sizes are seeking to take advantage of this source of competitive advantage. A brief history of the twentyfirst century by thomas l. Outsourcing dictionary definition outsourcing defined yourdictionary. List of books and articles about outsourcing online. 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. Outsourcing is a hot topic among business leaders and workers in the global business community. Some of the disadvantages are misuse of ip rights, labor related problems due to job loss at outsourcing company, government barriers, etc. Outsourcing is a business practice in which services or job functions are farmed out to a third party. Core skills, as a general rule, should be kept inhouse. However, the outsourcing of noncore functions can often be completed quickly, efficiently, and costeffectively by an outside specialist. Aug 16, 2019 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. To send away some of a companys work to be done by people outside the company.
It is a common practice that businesses use to cut expenses, gain access to employees with a. The transferring of certain business functions from internal staff to outside contractors. Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed inhouse by. Definition of outsourcing noun in oxford advanced learners dictionary. Outsourcing noun meaning, pronunciation and more by macmillan dictionary. 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. She was recently recognized by chambers usa as one of the. Before the word came into widespread use, people talked about farming or contracting things out. Cite the definition of outsourcing definition of outsourcing noun of a business or government, the act or process of contracting an outside source, instead of. Business and industryoutsourcing synonyms, business and industryoutsourcing pronunciation, business and industryoutsourcing translation, english dictionary definition of business and industryoutsourcing. Even in an everyday household in america, you can find forms of outsourcing for example, the gardening service.
Outsource definition for englishlanguage learners from. Outsourcing is a business practice in which certain functions required by the business are performed by outside parties on a contract basis rather than the businesss employees. Originally, this was associated with manufacturing firms, such as cocacola that outsourced large segments of its supply chain. Written by a team of experts, it features the very latest terminology, for example, the recent vocabulary associated with structured finance and the associated. Outsource definition and meaning collins english dictionary. If a company outsources work or things, it pays workers from outside the company to do.
In the public sector, outsourcing will most often imply that public sector activities are taken over by the private sector. Most businesses have always outsourced some of their activities. For instance, an insurance company might outsource their claims processing program or a bank might outsource their. Internal outsourcing is the purchase by a company of services or material inputs from a source located in another firm within the same country. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more. Originally, this was associated with manufacturing firms, such as. Outsourcing works best when used for noncore skills.
Sometimes outsourcing involves transferring employees and assets to. Outsourcing is the purchase of goods or services from an outside source. Define outsourcing by websters dictionary, wordnet lexical database, dictionary of computing, legal dictionary, medical dictionary, dream dictionary. Outsourcing is the movement of a function inside a company to an entity outside it. Outsourcing definition, of a company or organization to purchase goods or subcontract services from an outside supplier or source.
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