Outsourcing

Formal

‘The transfer (or outsourcing) of part of an undertaking to a third party for better service or lower cost from a specialist in that niche’. Other benefits can include the release and refocusing of business resources to new areas of where more profits can be earned’.

Real-world Example

A company hands its payroll processing to a specialist third-party provider instead of running it in-house - outsourcing a non-core function to reduce cost and free up internal resources.