Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

outsourcing

The contracting out of work to an outside supplier.

Source: Financial Times

Outsourcing can be defined as turning over all or part of an activity to a supplier. While outsourcing was originally restricted to basic activities, it currently pervades the management of many companies.

Outsourcing is generally considered a very powerful tool to cut costs and improve service quality because it enables companies to take advantage of specialised suppliers. It can also help firms focus on their core...