Outsourcing is the process of contracting operational tasks and processes to third party organizations. By outsourcing services which could also be provided internally to specialized external service providers, resources (financial, labor, production facilities) are freed up and can be re-deployed into the core business activities. This can improve the operational and strategic market position of the organization. When services (e.g., data collection, payroll, human resources, marketing) or the production of parts and components are contracted to a third party organization abroad, the process is referred to as "offshore outsourcing".
See also: Offshoring/Offshore-Outsourcing