So what is outsourcing? A fairly recent addition to business terminology, outsourcing in a business is the delegation of certain non-core operations to other separate entities that specialize in those operations. Put very simply, outsourcing means giving away certain tasks which though imperative to the actual business, can be better managed by another industry which specializes in that task.
Outsourcing entails transferring management control and decision making power to the other industry as well. This means that there is a lot more interaction, and information exchange, coordination and trust between the outsourcer and its client, making it different from the established buyer-seller relationship.
