Outsourcing — Flashcards

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Outsourcing means contracting out certain business functions, processes, etc. to an outside agency or third party so as to take advantage of the outside agency's expertise and experience. It helps a b…

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To outsource means to engage the services of an outside agency to manage, operate and deliver one or more business functions or processes. It is the act of handing over some work to another organisati…

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Outsourcing is called a new trend in business because firms increasingly use outside agencies for specialised work instead of doing every task inside the organisation. This improves efficiency, qualit…

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The term outsourcing was coined by East man Kodak Inc. in 1889. This fact is important for remembering the origin of the term in business studies.

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Outsourcing involves three parties: the outsourced, the outsourcer, and the service provider. The outsourced is the external agency that agrees to perform certain functions and processes. The outsourc…

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The outsourced is the external agency which agrees to perform certain functions and processes. It is the outside party that accepts the work assigned by the organisation that wants to outsource.

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The outsourcer is the organisation which engages an external agency to perform some functions and processes. It is the company that gives the work to outside support.

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The service provider is the agency or individual who actually performs the function or process. In some cases, the service provider may be the same as the outsourced.