Final answer:
Outsourcing is the practice of contracting with an external company to provide a service or produce goods, which can also occur internationally.
Step-by-step explanation:
Contracting with a third party or an external company to manufacture a good or deliver a service is known as outsourcing. This is the process whereby a company contracts outside contractors, sometimes abroad, to perform tasks that were once completed internally. Examples include accounting, payroll, customer service, and data processing services. Outsourcing can be contrasted with offshoring, which involves moving company operations to another country to access cheaper labor markets. Both practices can lead to significant cost savings for companies and have greatly shifted the demand for workers in the global economy.