What does "outsourcing" mean?

Outsourcing refers to the practice of hiring external firms to manage specific business functions or processes that a company may not wish to handle internally. This approach allows organizations to focus on their core competencies while delegating tasks such as accounting, customer service, or manufacturing to specialized firms that can perform these functions more efficiently and often at a lower cost. By utilizing outsourcing, businesses can leverage the expertise and resources of third parties, streamline their operations, and potentially improve service delivery. This strategy can lead to cost savings, increased flexibility, and the ability to scale operations more effectively, making it a popular choice among companies looking to optimize their performance.