In business, outsourcing involves contracting outside of a business process to other parties (compared to business process outsourcing). "Outsourcing" concept comes out of the American Dictionary 'Outside Resources' and it does not always return at least 1981 outsourcing sometimes involves the transfer of employees and assets from another firm, but dates Outsourcing is also the practice of handing over control of public services to nonprofit corporations.

Outsourcing includes both foreign and domestic contracting, and sometimes offshore (a business function relocation from any other country). Including low international labor rates can provide major motivation for outsourcing financial savings or offshore.

Outsourcing, insourcing, entails bringing in-process processes operated by third-party firms, and sometimes done through vertical integration. However, a business may necessarily provide a contract service for other businesses without insourcing that business process.