Outsourcing is the process by which a company of contracts another company to provide particular services. In other words. it refers to getting the work done through outside expert agencies. 

Features of Outsourcing: 

1. Outsourcing involves contracting out: Many companies have started outsourcing processes to outside expert agencies (i.e. to other organisations) on a contractual basis. The outsources charges fees for performing his services on a contract basis.

2. Generally non-core business activities are outsourced: Depending upon what business a company is in, there will be some activities that are central and critical to its basic business purpose. Other activities may be regarded as secondary or incidental to fulfilling that basic purpose. Only those activities (other activities) are outsourced to outside agencies.

3. Processes may be outsourced to a third party: The processes are outsourced to service provider (i.e. third party) who operates independently in the market and provides services to other firms too.