What is meant by outsourcing?

Outsourcing refers to the practice of obtaining goods or services from external suppliers rather than relying solely on in-house resources. This strategy is commonly adopted by businesses to leverage specialized services, reduce costs, or improve efficiency by contracting out specific functions—such as manufacturing, customer service, or IT support—to external organizations. By doing so, companies can focus on their core competencies while benefiting from the expertise and competitive advantages that external providers may offer. This approach can also help businesses access resources and talents that might not be available internally.