Definition of Outsourced / Outsourcing

Outsourced is the past tense of the verb to outsource.

(1) To obtain services from an outside or foreign supplier in place of an internal source.
(2) To contract work to an outside firm or abroad.
(3) To assign particular specialized and/or repetitive tasks that are not core competencies of the mother company
to an outside or foreign company.
(4) To procure back office services with an outside supplier or provider.

BPO Outsourcing is becoming more and more popular as companies have to fight harder to survive in a world where margins are getting tighter by the day. If a company is doing a particular task even slightly less efficiently than the competition, they will lose profits and market share in the long run. One solution available which may or may not increase efficiency is to outsource particular tasks to a company that specializes in those particular tasks. For example, if your company focuses on widget production, but 10% of your labor resources are devoted to reminder calls, it might make sense to focus more on widgets, and outsource the reminder calls to Manila where there are companies who specialize in all aspects of the call center business. Knowledge intensive tasks are also more and more commonly outsourced to KPO and LPO companies who specialize in knowledge process outsourcing and legal process outsourcing.

Outsourced — the TV show
Outsourced is also an American television sitcom filmed in Los Angeles that was set in an Indian Workplace fictionally located in Mumbai, India. A catalog based company selling American novelty goods such as whoopee cushions, foam fingers, and wallets made of bacon hires Todd Dempsy from Kansas to relocated to Bombay. Every episode of this hillarious comedy focuses around Todd’s culture shock dealing with Indians and attempting to teach the local Mumbai staff all about American sensibilities and culture.

See NBC’s profile page for the show — Outsourced


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See our comprehensive definition of — outsourcing — which goes over when and why outsourcing is done, types of outsourcing arrangements (freelance, contract, staff leasing), a detailed look at categorizations of outsourced tasks (BPO, KPO, LPO) as well as a detailed look at 55+ commonly outsourced specialties in the call center, data entry, software and other outsourcing industries.

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