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Outsourcing is a business practice in which a company hires another company or an individual to perform tasks, handle operations or provide services that are either usually executed or had previously been done in house. Outsourcing, also known as contracting out is a business practice used by companies to reduce costs or improve efficiency by shifting tasks, operations, jobs or processes to an external contracted third party for a significant period of time. When used properly, outsourcing is an effective strategy to reduce expenses, and can even provide a business with a competitive advantage over rivals. Outsourcing is usually done as a cost-cutting measure; it can affect jobs ranging from customer support to manufacturing to the back office.
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