Business Glossary

acquisition of products and services from sources outside the organization instead of producing them internally.

contracting out to another manufacturer or supplier work that would otherwise be done by a company's own employees. Outsourcing by General Motors to avoid high wages paid to auto workers was a major issue in negiotiations with the United Auto Workers union in the 1990s.

having a service or product supplied or manufactured by another, who could be a manufacturer, merchant wholesaler, agent, or broker.