Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company.
The decision to outsource is often made in the interest of lowering cost for improving time and energy efficiencies, making better use of time and energy costs, thereby redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, technology and resource. Outsourcing became part of the business lexicon during the 1980s and it is essentially a division of labor.
