Outsource Meaning: Definition, Examples, and Translations
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outsource
[ˈaʊtsɔːs ]
Definitions
business operations
To obtain goods or services from an outside supplier, especially in place of an internal source. Companies often outsource tasks such as customer service, IT support, and manufacturing to save costs or improve efficiency.
Synonyms
contract out, delegate, subcontract.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| outsource |
Commonly used in business when a company hires another company or individual to perform tasks, services, or functions that could be or were previously done in-house. Usually used when talking about tasks that are not the core functions of the business.
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| contract out |
Typically used in formal or official contexts where a specific contract is made to transfer a particular task or job to an external party. Often involves legal agreements and specific terms.
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| delegate |
Used when distributing tasks or responsibilities within a team or organization to others, particularly subordinates or team members. It involves assigning responsibility rather than hiring external help.
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| subcontract |
Used primarily in construction and large projects where a main contractor assigns parts of the work to other specialized contractors. It suggests a hierarchical relationship between the main contractor and subcontractors.
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Examples of usage
- The company decided to outsource their logistics department to a third-party provider.
- Many businesses outsource their payroll processing to specialized firms.
business
A practice used by companies to reduce costs or improve efficiency by transferring portions of work to outside suppliers rather than completing it internally.
Synonyms
contracting out, externalization, subcontracting.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| outsource |
General term for having tasks or projects done by external companies or individuals instead of in-house staff. Commonly used in business environments.
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| contracting out |
Typically used to refer to the formal process of entering into a contractual agreement with an outside entity to perform specific services or tasks.
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| subcontracting |
Refers to hiring another company or individual to complete specific parts of a larger project. Commonly used in construction and manufacturing.
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| externalization |
A more formal and broader term often used in academic or strategic business discussions. It refers to moving internal functions to an external organization.
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Examples of usage
- Outsourcing has become a common strategy for companies looking to streamline their operations.
- The outsourcing of manufacturing has led to increased global competition.
Translations
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Interesting Facts
Economics
- Outsourcing allows companies to save on labor costs and focus on their core functions, contributing to greater efficiency.
- Certain countries have become popular outsourcing destinations because of lower wages and skilled labor, boosting their economies.
Pop Culture
- Popular films and TV shows have explored the theme of outsourcing, often portraying the comedic mishaps arising from cultural misunderstandings.
- Songs and documentaries have critiqued or celebrated outsourcing, highlighting its impact on job markets and economies.
Technology
- The rise of the internet has made outsourcing easier, enabling companies to connect with overseas workers and freelancers quickly.
- Tech companies often outsource software development, leveraging specialized skills from global talent pools.
Business Practices
- Many companies outsource tasks like customer service, IT support, and manufacturing to third-party providers for cost effectiveness.
- Strategic outsourcing can lead to improved service quality and innovation by allowing specialized companies to handle specific jobs.
Origin of 'outsource'
Main points about word origin
- The term 'outsource' emerged in the 1980s during the rise of globalization, combining 'out' and 'source' to indicate finding external causes for production.
- It was popularized by businesses looking to cut costs by hiring outside firms rather than maintaining in-house operations.
The term 'outsource' was first coined in the 1980s, as companies began to explore the benefits of transferring certain business functions to external providers. This practice gained popularity in the following decades as globalization and technological advancements made it easier to connect with suppliers around the world. Today, outsourcing is a common strategy used by businesses of all sizes to stay competitive in the global marketplace.
See also: insourcing, sources, sourcing.