Outsourcing

Outsourcing is process of purchasing goods and services from outside vendors rather than producing the same goods or providing the same services within the organization.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Outsourcing. Process of purchasing goods and services from outside vendors rather than producing the same goods or providing the same services within the organization.

According to the Corporate Strategy by Lynch (4th edition),

Outsourcing. The decision by an organization to buy in products or services from outside, rather than make them inside the organization.