What does mean by Outsourcing?

The concept of taking internal company functions and paying an outside firm to handle them. Outsourcing is done to save money, improve quality, or free company resources for other activities. Outsourcing was first done in the data-processing industry and has spread to areas, including telemessaging and call centers.

Contracting out some or all of an organization's IT or communications operations. Often believed (erroneously, according to recent research) to lead to cost savings.

A formal agreement with a third party to perform a service for an organization.
The practice of turning-over responsibility of some to all of an organization's information systems applications and operations to an outside firm.
The practice of having goods or services provided by a person or persons outside the business or organisation.
Performance of a production activity that was previously done inside a firm or plant outside that firm or plant. 2. Manufacture of inputs to a production process, or a part of a process, in another location, especially in another country. 3. Another term for fragmentation.
In computing, outsourcing can take many forms. A company, for instance, may outsource its whole IT operation, so that another outsourcing firm provides the hosting and maintenance of its servers and ensures that the system runs smoothly and runs its application development. This would be a total outsourcing solution, although many companies will often just pick elements of such a package.
contracting work to a third party.
The transfer of a function previously performed in-house to an outside provider.
The contracting out of work that was previously done within an organisation to an external provider. More on outsourcing