What does mean by out source or insource?

Answer 1

There are many jobs in a company which could be done at less cost to the company if they simply out sourced them to another company. For example, rather than Ford setting up a tire manufacturing plant to fit all the various models of its cars and trucks with tires; it is cheaper to deal with a company who specializes in the manufacture of tires. Thus, they save the cost of setting up a plant, hiring employees, acquiring raw materials, etc, all which would increase the per unit cost of the tire which would add to the cost of the vehicle. That is a good example of outsourcing.

I've never heard of the term in sourcing; but it would simply be the opposite, i.e. rather than going outside the company, one would use in-house talent to do the job.