Outsourcing is a business practice in which companies use external providers to carry out business processes that would otherwise be handled internally.[1][2][3] Outsourcing sometimes involves transferring employees and assets from one firm to another.
Not to be confused with Offshoring.
Outsourcing is a business practice in which companies use external providers to carry out business processes that would otherwise be handled internally.[1][2][3] Outsourcing 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 at a time when industrial jobs in the United States were being moved overseas, contributing to the economic and cultural collapse of small, industrial towns.[4][5][6] In some contexts, the term smartsourcing is also used.[7]
. The concept, which The Economist says has "made its presence felt since the time of the Second World War",[8] often involves the contracting out of a business process (e.g., payroll processing, claims processing), operational, and/or non-core functions, such as manufacturing, facility management, call center/call center support.
. The practice of handing over control of public services to private enterprises (privatization), even if conducted on a limited, short-term basis,[9] may also be described as outsourcing.[10]
. Outsourcing includes both foreign and domestic contracting,[11] and therefore should not be confused with offshoring which is relocating a business process to another country but does not imply or preclude another company.[12] In practice, the concepts can be intertwined, i.e. offshore outsourcing, and can be individually or jointly, partially or completely reversed,[13] as described by terms such as reshori
. The term outsourcing, which came from the phrase outside resourcing, originated no later than 1981 at a time when industrial jobs in the United States were being moved overseas, contributing to the economic and cultural collapse of small, industrial towns.[4][5][6] In some contexts, the term smartsourcing is also used.[7]
. The concept, which The Economist says has "made its presence felt since the time of the Second World War",[8] often involves the contracting out of a business process (e.g., payroll processing, claims processing), operational, and/or non-core functions, such as manufacturing, facility management, call center/call center support
. The practice of handing over control of public services to private enterprises (privatization), even if conducted on a limited, short-term basis,[9] may also be described as outsourcing.[10
. Outsourcing includes both foreign and domestic contracting,[11] and therefore should not be confused with offshoring which is relocating a business process to another country but does not imply or preclude another company.[12] In practice, The concepts can be intertwined, i.e. offshore outsourcing, and can be individually or jointly, partially or completely reversed,[13] as described by terms such as reshoring, inspiring, and insourcing.
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