Meaning & use

outsourcing

noun·Academicbusiness

Last updated

UK/ˈaʊt.sɔː.sɪŋ/
US/ˈaʊt.sɔːr.sɪŋ/

Meaning

  1. noununcountable

    The practice of paying another company or people outside your organization to do work you would otherwise do yourself.

    Grammar: Usually no article: outsourcing saves money.

    Patterns

    • outsourcing of something
    • outsourcing to someone

    The firm saved money through the outsourcing of its customer service.

    Outsourcing to overseas call centres became common in the 1990s.

    Unions have criticised outsourcing because it can reduce local jobs.

Common combinations

outsourcing of jobs
The outsourcing of jobs worried the factory workers.
IT outsourcing
The bank relies on IT outsourcing for its help desk.
rely on outsourcing
Small firms often rely on outsourcing for payroll.
cost savings from outsourcing
Cost savings from outsourcing were lower than expected.
outsourcing contract
They signed a five-year outsourcing contract.

Synonyms and how they differ

subcontracting
Subcontracting means passing part of a specific job to another firm, and is common in construction, whereas outsourcing covers whole functions such as payroll.
contracting out
Contracting out is more common in the public sector and is a plainer way of saying much the same thing.
offshoring
Offshoring means moving work to another country, while outsourcing can happen within the same country.

Opposites

Word family

outsource verb
to give work to an outside company
outsourced adjective
done by an outside company
outsourcer noun
a company that does outsourced work

Commonly confused: outsourcing or offshoring?

outsourcing vs offshoring

Offshoring always means moving work abroad. Outsourcing only means giving work to an outside party, wherever it is.

Practice

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