Outsourcing
Contracting formerly internal tasks to an external organization / From Wikipedia, the free encyclopedia
Dear Wikiwand AI, let's keep it short by simply answering these key questions:
Can you list the top facts and stats about In-house?
Summarize this article for a 10 year old
Outsourcing is a business practice in which companies use external providers to carry out business processes that would otherwise be handled internally, [1][2] or in-house.[3] Outsourcing sometimes involves transferring employees and assets from one firm to another.
The term outsourcing, which came from the phrase outside resourcing, originated no later than 1981 at a time when industrial jobs in the United States were being moved overseas, contributing to the economic and cultural collapse of small, industrial towns.[4][5][6]
The concept, which The Economist says has "made its presence felt since the time of the Second World War",[7] often involves the contracting out of a business process (e.g., payroll processing, claims processing), operational, and/or non-core functions, such as manufacturing, facility management, call center/call center support.
The practice of handing over control of public services to private enterprises (privatization), even if conducted on a limited, short-term basis,[8] may also be described as outsourcing.[9]
Outsourcing includes both foreign and domestic contracting,[10] and therefore should not be confused with offshoring which is relocating a business process to another country but does not imply or preclude another company.[11] In practice, the concepts can be intertwined, i.e. offshore outsourcing, and can be individually or jointly, partially or completely reversed,[12] as described by terms such as reshoring, inshoring, and insourcing.