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Outsourcing – What It Is and What It Is Not

Outsourcing, as defined, is paying another person or company to do something for you that you could have done by you or your staff. It has been a business strategy for as long as 100 B.C.E. with the Romans but, was only formally identified until 1989. The need for external suppliers for services at that time was the baseline stage in the evolution of outsourcing. In the 1990’s organizations geared into cost-saving options by farming out functions necessary to run a company. However, these functions were not related to the core of the business. They began to contract service companies to deliver accounting, human resources, data processing, internal mail distribution, security, and plant maintenance.