Final answer:
Outsourcing is the practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations. It involves hiring outside contractors to perform tasks that the company once performed internally.
Step-by-step explanation:
Outsourcing refers to the practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations. It involves hiring outside contractors, sometimes abroad, to perform tasks that the company once performed internally. This can include functions such as accounting, payroll, human resources, and data processing services. Outsourcing has become a major cost-saving option for large companies, especially with the globalization and the ability to access cheaper labor markets overseas.