The buying in of components, sub-assemblies, finished products, and services from outside suppliers rather than by supplying them internally. A firm may decide to buy in rather than supply internally because it lacks the expertise, investment capital, or physical space required to do so. It may also be able to buy in more cheaply or more quickly than manufacturing in-house. More recently this decision may be taken in the process of business process re-engineering or downsizing, when specific activities have been redefined as noncore activities. In certain instances, computer, legal, and personnel services have been outsourced as well as the more traditional manufactured components.
Subjects: Business and Management.