Outsourcing

Outsourcing is the process of hiring an outside firm to do work that was previously handled in-house. Services that are commonly outsourced include payroll, accounting, human resources, marketing and advertising, and manufacturing. Outsourcing can often save a company money, as a firm that specializes in providing the needed service may be able to do it more cheaply, or with higher quality. Outsourcing may also allow a company to turn more of its focus to its core business.

Offshoring

The term offshoring refers to outsourcing that involves hiring a company in another country. This has been a controversial topic in some countries, particularly the United States, because some workers whose jobs have moved overseas perceive that they have been "sold out" by their company.