Outsourcing is a contract of two or more companies. One company hires another to execute a scope of work mentioned in the contract. Sometimes outsourcing includes transferring staff from one company to another for a period agreed by the contract. For many startup companies, outsourcing is a cost-cutting measure.

Outsourcing can cover a wide range of work from the development of the whole web application to customer support. 

See also Dedicated Team (Staff Augmentation), Two-pizza-size Team.