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Business Process Outsourcing
To carve out an
internal business process such as information
technology (IT) or human resources (HR) and
outsource those processes to private entities
to reduce costs and improve efficiency.
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Outsourcing
Action that occurs when an entity
makes an informed decision to contract out a
product, service, or business process that was
previously provided by internal (in-house)
resources. The responsibility for providing the
outsourced product, service, or business
process remains with the entity; the entity
pays the contractor for the work done and
administers the contract. See also: Insourcing
(in-house), Contracting Out.
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Outsourcing of Non-Core Activity
The contracting
of non-core functions or operations with
external contractors, businesses, or suppliers.
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Procurement Outsourcing
The contractual
transfer of procurement-related activities to a
private contractor or third party.