outsourced
Definition
Outsourcing means hiring an outside person or company to handle work that could otherwise be done by your own employees. A business owner might outsource tasks like accounting, IT support, or customer service to specialists who focus solely on that work. The outside party works for you under a contract but is not your employee.
Example
Instead of hiring a full-time bookkeeper, a bakery owner pays an accounting firm to handle all payroll and taxes each month.
Watch Out
When you outsource work, you need a solid written contract that spells out who owns the work product, because without it you could end up paying for something you do not legally own.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.