Outsourcing | ISB Vietnam Glossary
Strategy

Outsourcing

Definition & Scope

Outsourcing is the business practice of hiring an external party to perform services or create goods that traditionally were performed in-house by the company's own employees and staff.

Why Companies Outsource

Companies outsource to reduce costs, access specialized expertise, increase efficiency, and focus internal resources on core business functions. Common examples include IT outsourcing, accounting outsourcing, and customer service outsourcing.