The A-Zs of Hiring Glossary


What Is Outsourcing?

Outsourcing refers to the practice of hiring an external company or individual to perform a business function that is typically handled internally. This can include anything from customer service and data entry to manufacturing and IT support.

Outsourcing has become increasingly popular in recent years as companies look for ways to reduce costs and improve efficiency. By outsourcing non-core functions, businesses can focus their resources on their core competencies and strategic initiatives.

However, outsourcing also has its drawbacks. It can lead to a loss of control over certain business functions and can sometimes result in lower quality work if the outsourcing partner is not carefully selected and managed.

Examples of outsourcing in the context of context might include a company outsourcing their marketing efforts to a digital marketing agency, or a manufacturer outsourcing their production to a factory overseas.

Why do companies outsource?

Companies outsource to reduce costs, improve efficiency, gain access to specialized skills or technology, and focus on core business functions.

What are some common outsourcing services?

Some common outsourcing services include IT services, customer service, human resources, accounting and finance, and manufacturing.

Outsourcing Dos And Donts


  • Clearly define your outsourcing needs and goals
  • Choose the right outsourcing partner based on their experience and expertise
  • Communicate effectively and regularly with your outsourcing partner
  • Set clear expectations and milestones for the project
  • Protect your intellectual property and confidential information
  • Establish a good working relationship with your outsourcing partner
  • Monitor the progress of the project and provide feedback
  • Take the time to evaluate the results and learn from the experience


  • Outsource core business functions or activities that are critical to your success
  • Choose an outsourcing partner based solely on cost
  • Assume that your outsourcing partner understands your business or industry without providing sufficient background information
  • Ignore cultural or language differences that may affect communication and understanding
  • Expect your outsourcing partner to solve all your problems without your involvement
  • Fail to establish clear guidelines for quality control and performance standards
  • Forget to maintain a good working relationship with your outsourcing partner
  • Underestimate the importance of managing the outsourcing relationship over time
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