Outsourced procurement refers to the practice of engaging external service providers or procurement organizations to handle all or specific aspects of an organization's procurement functions. Instead of managing procurement in-house, the organization delegates the procurement activities, such as sourcing, supplier management, purchasing, and contract negotiation, to a third-party vendor.

The outsourced procurement provider brings specialized expertise, technology, and resources to streamline procurement processes, achieve cost savings, and improve operational efficiency. This approach allows the organization to focus on its core competencies while leveraging the expertise of external specialists to manage procurement effectively.