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Outsource is a relatively new word that was coined in the 1980s. We will examine the definition of the word outsource, where it came from and some examples of its use in sentences.

Outsource means to obtain goods or services from an outside source. However, the most commonly used meaning of the word outsource is to contract jobs or tasks that were previously provided inside a company. Increasingly, business needs are outsourced in order to reduce overhead and increase efficiency, productivity, revenue and profitability to remain competitive. Firms may hire a workforce for less compensation in countries with a lower cost of living, making it cheaper to operate using global outsourcing and make a larger profit. Many industries gain a competitive advantage through the cost savings incurred by finding the skilled talent with the capabilities and expertise they need for staffing, overseas. Tasks such as data entry services, bookkeeping, payroll, computing, IT services or information technology, running a call center and other back office services are commonly outsourced. Offshore outsourcing involves moving a business process to a foreign country. Nearshore outsourcing involves moving a business process to a country in the same time zone as the onshore business, to enable easier coordination between the two offices. There is great controversy over the use of outsourcing, especially outsourcing overseas. Proponents say it is a great way to employ global talent and cut costs, while opponents say outsourcing is a way for greedy corporations to take advantage of people who have fewer life choices. Peter Drucker is credited with coining the word outsource in 1989, though the earliest known use of the word occurred in 1981. Outsource is not a compound word. It is a portmanteau of the words outside and resource. A portmanteau is a word that is composed by blending the sounds and the meanings of two different words. Outsource is a verb, related words are outsources, outsourced, outsourcing.


Some of them outsource their software development to what we call “on-site companies,” where they actually rely on outside firms to staff their technology teams and complete projects on-site. (Forbes Magazine)

This led to high level concerns over the cost impact of outsourcing and a drive to keep elective procedures within the NHS, which has since had an adverse impact on the private sector providers. (The Health Service Journal) The University of Wyoming would gain “no financial advantage” from outsourcing its dining services, consultant Peg Rodger told UW trustees Wednesday. (The Laramie Boomerang)

“Do what you do best and outsource the rest”, a business tagline first coined and developed in the 1990s by the renown management expert and consultant, Peter Drucker inspired a whole new way of doing business, leading industries, companies, art and educational institutions, and even governments to adopt outsourcing as a way of meeting evolving requirements. (Entrepreneur Magazine)

The Kerala High Court has directed State Bank of India to maintain status quo on its decision to outsource currency administration and cash management to third-party service providers in the Kerala circle. (The Hindu Business Line)

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