Outsourcing is the practice of hiring external companies or individuals to perform tasks or services that are typically done in-house. This can include functions like customer service, manufacturing, or IT support. Businesses often choose outsourcing to reduce costs, access specialized skills, or improve efficiency. Companies may outsource to locations both domestically and internationally, depending on factors like labor costs and expertise. By doing so, they can focus on their core activities while leveraging the strengths of other organizations. This strategy can lead to increased flexibility and scalability in operations.