Outsourcing refers to the practice of contracting out certain business functions or processes to external parties rather than handling them internally. This strategic decision is often made to reduce costs, enhance efficiency, and focus on core competencies. Outsourcing definition can encompass various tasks, including manufacturing, customer service, IT support, and administrative functions. It allows companies to access specialized skills and resources without the need for extensive investment in infrastructure or personnel. While outsourcing can offer numerous benefits, such as increased flexibility and scalability, it also presents challenges such as quality control issues and potential security risks. Careful consideration and management are crucial for successful outsourcing implementations.