When using outsourcing, a company needing data processing services hires an outside organization to handle all or part of these services.

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Outsourcing involves a company hiring an external organization to perform services or create goods that traditionally were performed in-house or could be done by the company's own staff. In the context of data processing services, outsourcing means the company hires an outside organization to manage these tasks, which can include data entry, data management, data analysis, and more, depending on the company's needs.

When Using Outsourcing, a Company Needing Data Processing Services Hires