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Last modified: Tuesday, September 16, 2003 

(v.) To seek resources outside of an organizational structure, usually to save money and/or exploit the skills of another entity. Typically used in terms of the business world, outsourcing often entails an enterprise using another company, such as a consultancy or application service provider, to provide a service that the enterprise can provide for itself, yet it is cheaper to utilize a third-party’s resources. For example, an enterprise might outsource its IT management because it is cheaper to contract a third-party to do so than it would be to build its own in-house IT management team. Or a company might outsource all of its data storage needs because it does not want to buy and maintain its own data storage devices. Or, a business might outsource its human resources tasks to a third-party instead of having its own dedicated human resources staff.

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related categories

Application Service Providers (ASPs)

Business Computing

Business Tools

related terms

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