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What does outsource mean?

Looking for the meaning or definition of the word outsource? Here's what it means.

Verb
  1. (chiefly US, business, management) To transfer the management and/or day-to-day execution of a business function to a third-party service provider.
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Companies that want to outsource hosting services can no longer assume a provider's financial stability.
It will outsource customer service and claims handling and will use the internet to market itself.
The Internet allows you to outsource those to a company, industry or entity that has actually converted that to a profit center.
What we do outsource is the sub-assembly of components and sub-assemblies themselves.
Quality reigns when it comes to choosing an adequate outsource partner, but the significance of inventory management capabilities is increasing.
For the company considering the decision to outsource, how can potential pitfalls be avoided?

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