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.

According to the Strategic Management by Parnell (4th edition),

Outsourcing. Contracting out a firm's noncore, non-revenue-producing activities to other organizations primarily (but not always) to reduce costs.

According to Managerial Accounting by Braun, Tietz (5th edition),

Outsourcing. Contracting an outside company to produce a product or perform a service. Outsourced work can be done domestically or overseas.

According to the ASME EMBOK,

Outsourcing. Engaging the services of third party service providers to add value to the company (streamline operations, reduce costs, reduce time to market, etc.).