Outsourcing is the transfer of entrepreneurial tasks and structures to external service providers. Informally, the phrase refers to a contract between two businesses in which one company hires another to perform particular activities on behalf of the hirer. It can also apply to employment outsourcing to lower-cost subsidiaries.

Companies mostly employ outsourcing to reduce costs, increase efficiency, and improve the quality of goods or services. Outsourcing can also help a company's strategic standing in the market.

Outsourcing is now used in practically every aspect of business. Its main applications are in marketing, accounting, customer service, and information technology. In general, any time-consuming tasks can be delegated.