In business, the term word sourcing refers to several procurement practices, aimed at finding,
evaluating and engaging suppliers for acquiring goods and services:
Outsourcing, the process of contracting a business function to someone else.
Insourcing, a process of contracting a business function to someone else to be completed in-
Global sourcing, a procurement strategy aimed at exploiting global efficiencies in production.
Strategic sourcing, a component of supply chain management, for improving and re-evaluating
Vested outsourcing, a hybrid business model in which a company and service provider in an
outsourcing or business relationship focus on shared values and goals to create an arrangement
that is mutually beneficial to each.
Sourcing Business Model, based on University of Tennessee (UT) research, a systems-based
approach to structuring supplier relationships. There are seven sourcing business models that
range from transactional to investment-based.
The seven models are:
Co-sourcing, a type of auditing service.
Low-cost country sourcing, a procurement strategy for acquiring materials from countries with
lower labor and production costs, to cut operating expenses.
Corporate sourcing, a supply chain, purchasing/procurement, and inventory function.
Second-tier sourcing, a practice of rewarding suppliers for attempting to achieve minority-
owned business spending goals of their customer.
Net sourcing, a practice of utilizing an established group of businesses, individuals, or hardware
& software applications to streamline or initiate procurement practices by tapping in to and
working through a third-party provider.
Inverted Sourcing, a price volatility reduction strategy usually conducted by procurement or
supply-chain person by which the value of an organization's waste-stream is maximized by
actively seeking out the highest price possible from a range of potential buyers exploiting price
trends and other market factors.
Remote Insourcing, a practice of contracting a third party vendor to complete a business
function by creating collaborative units between in-house and third party staff.
Multi-sourcing, a strategy that treats a given function, such as IT, as a portfolio of activities,
some of which should be outsourced and others of which should be performed by internal staff.
Crowdsourcing, using an undefined, generally large group of people or community in the form of
an open call to perform a task.