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outsourcing

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outsourcing

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Also known as contracting out

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~50 min read

Article

63 sections
Contents
  • Motivation
  • Theoretical frameworks
  • Reasons for outsourcing
  • Outsourcing agreements
  • History
  • 20th century
  • IT-enabled services offshore outsourcing
  • Early 21st century
  • Limitations due to growth
  • Growth of white-collar outsourcing
  • Variations
  • Innovation outsourcing
  • Co-sourcing
  • Identity management co-sourcing
  • Offshore software R&D co-sourcing
  • Countries involved in outsourced software R&D
  • Implications
  • Performance measurement
  • Management processes
  • Communications and customer service
  • Governance
  • Security
  • Information technology
  • Step-in rights
  • Issues
  • Insourcing
  • Regional insourcing
  • Net effect on jobs
  • Insourcing crossbreeds
  • In the U.S.
  • 100% U.S. Based
  • Standpoint of labor
  • Standpoint of government
  • Government response
  • Legislative authorisation
  • Policy-making strategy
  • Competitiveness
  • Industrial policy
  • Environmental policy
  • Success stories
  • Globalization and socio-economic implications
  • Industrialization
  • Growth and income
  • Usability issues in offshore development
  • 2000-2012 R&D
  • Future trends
  • Practice by state or region
  • United States
  • Outsourcing visa
  • Europe
  • Asia
  • Examples
  • Print and mail outsourcing
  • Marketing outsourcing
  • Business process outsourcing
  • BPO caveats
  • Technological pressures
  • Industry size
  • Related
  • See also
  • References
  • Further reading
  • External links

Outsourcing is a business practice in which companies use external providers to carry out business processes that would otherwise be handled internally. Outsourcing sometimes involves transferring employees and assets from one firm to another, or forming a separate legal entity that acts as a management service organization (MSO).

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. In some contexts, the term smartsourcing is also used.

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