Outsourcing refers to the practice of delegating specific business processes or functions to external third-party vendors or service providers. Organizations choose to outsource to leverage the expertise, resources, and cost advantages offered by specialized providers. The outsourced functions can range from customer support and IT services to manufacturing and logistics.

By outsourcing, organizations can focus on their core competencies, reduce operational costs, access advanced technologies, and benefit from the scalability and flexibility provided by external partners. Effective outsourcing requires clear communication, well-defined contracts, and ongoing collaboration to ensure successful implementation and achievement of desired outcomes.