Final answer:
Outsourcing is the practice of hiring outside contractors to perform tasks that were previously handled by internal staff. It allows companies to increase efficiency and reduce costs, although it can have implications for job availability and the economy.
Step-by-step explanation:
Outsourcing is the practice of hiring outside contractors, sometimes abroad, to perform tasks that were previously handled by internal staff and resources. It involves the strategic use of external resources to perform certain activities. This can include tasks like accounting, payroll, human resources, and data processing services.
For example, many companies outsource their customer service operations to call centers in other countries, where labor is cheaper. This allows them to save on costs and focus on their core business functions.
Outsourcing is an important strategy for companies to increase efficiency and reduce costs, but it can also have implications for job availability and the economy.