What Is Outsourcing?

Outsourcing is “the delegation of non-core operations or jobs from internal production to an external entity (such as a subcontractor) that specializes in that operation.” Outsourcing can result in a company quickly reaping benefits through expertise, enhanced control, and leverage with limited capital investment and with reduced operational expenses. Successful outsourcing enables organizations to focus on what they do best—accomplish their mission. For the federal government, it is the core business of governing and government. Outsourcing is not an end in itself. It is a management tool and should be approached in that manner. Creation of a win-win scenario between the government and the contractor is perhaps the most significant factor leading to the successful implementation of an outsourcing strategy.