3 A B C D E F G H I J K L M N O P Q R S T U V W Y

Outsourcing

Outsourcing means subcontracting a process, such as product design or manufacturing, to a third-party company. The management concept of ‘focus on core competence’ has encouraged outsourcing everything which is not core competence. 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.