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Outsourcing

Outsourcing refers to the practice of delegating certain business functions or processes to external companies or service providers, as a strategy to reduce costs, focus on core activities, or take advantage of specialized expertise. This practice can encompass everything from manufacturing to customer service and IT management.

Outsourcing meaning with examples

  • A growing number of companies are outsourcing their IT support to specialized firms, allowing them to focus on core business functions while ensuring that technical issues are handled promptly and efficiently.
  • Due to high operational costs, the organization decided to outsource its customer service operations to a dedicated call center, enabling them to improve service quality and reduce expenses simultaneously.
  • In an attempt to streamline production and foster innovation, the tech giant opted for outsourcing its logistics and supply chain management, resulting in a significant increase in efficiency and reduced turnaround times.
  • As a strategic move, the fashion retailer announced its decision to outsource its marketing campaigns to a top-tier agency, believing that the agency’s expertise would enhance brand visibility and customer engagement.

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