Outsourcing is simple - you hire someone to do a job you can't or don't want to do. However, there's a lot of jargon to get your head around, so we've provided this friendly jargon buster...
Offshoring – offshoring is the practice of outsourcing services to another country
Co-sourcing – this is when you outsource only part of the service, in other words hiring another company to work with you collaboratively
BPO – Business Process Outsourcing is a specific subset of outsourcing, relating to the operations of a specific business process to another company. Typically, this refers to things like human resources, finance, and accounting
Best shore – best shoring is the term used by some businesses to refer to the fact that they outsourced their services to the optimal location
Farmshore sourcing – this is the process of outsourcing services to a rural part of the country to achieve lower operating costs than you might encounter in urban areas
Nearshoring – this is the process of offshoring services, but to a relatively geographically close country. For example, a company in the US might outsource to Latin America to get cheaper labour