Outsourcing means subcontracting a process, such as product design, manufacturing, rendering in the context of M&E and other general but important menial tasks to a third-party company.
The management concept of ‘focus on core competence’ has encouraged the outsourcing of everything which is not the core competence of the business. The ability to make use of lower cost resources (for example, land and labour in lower cost countries) has also been a driver of outsourcing.