Outsourced Meaning: Definition, Examples, and Translations
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outsourced
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Definitions
business context
Outsourced refers to the practice of obtaining goods or services from an outside or external source, often from another company. This usually involves transferring specific business functions or processes to another party to improve efficiency and reduce costs.
Synonyms
contracted, delegated, subcontracted.
Examples of usage
- The company outsourced its customer service to a third-party provider.
- Many businesses are outsourcing their IT services to save on operational costs.
- Outsourced manufacturing has become common in various industries.
business context
Outsourced describes a situation where tasks, jobs, or functions are transferred to an external party or service provider. Many companies choose this approach to streamline operations and focus on core competencies.
Synonyms
contracted out, externalized.
Examples of usage
- The outsourced team managed our marketing strategies.
- They have an outsourced workforce that handles logistics.
- Outsourced projects often have unique challenges.
Translations
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Interesting Facts
Economic Impact
- Outsourcing can significantly reduce costs for businesses, allowing them to allocate resources to core activities.
- It has led to job creation in developing countries but has also caused job losses in higher-cost countries.
- The practice can lead to increased efficiency, as companies can hire specialized firms for specific tasks.
Cultural Considerations
- Different cultures may perceive outsourcing in varied ways; some see it as an opportunity while others view it negatively due to job losses.
- In some cases, companies must navigate cultural barriers and language differences when outsourcing work internationally.
- Companies often need to adapt their practices to align with local customs and business ethics when outsourcing.
Technology
- The rise of digital platforms has made outsourcing easier, allowing companies to connect with freelancers and firms worldwide.
- Cloud computing has enabled remote work, leading to increased outsourcing opportunities for IT and support services.
- Automation and AI are beginning to replace certain outsourced tasks, prompting discussions on the future of this practice.
Corporate Strategy
- Outsourcing is often part of a broader strategy to improve a company's focus on core competencies.
- Many companies use outsourcing to gain access to specialized skills and technologies that they do not possess internally.
- Strategic partnerships formed through outsourcing can lead to long-term relationships beneficial for innovation.
Origin of 'outsourced'
Main points about word origin
- The term originated in the early 1980s, combining 'out' and 'source,' which refers to using external resources.
- The concept has roots in manufacturing but has expanded to include areas like customer service and IT.
- It was popularized in the 1990s during the rise of globalization and digital technology.
The term 'outsourced' originated in the United States during the 1980s and gained prominence in corporate jargon in the 1990s as businesses began to adopt new strategies for cost-saving and efficiency. It is a compound of 'out' and 'source', effectively meaning to seek resources or services externally rather than internally. The practice accelerated with the rise of the internet and globalization, enabling companies to connect with service providers worldwide. As technology advanced, outsourcing became a staple business strategy, impacting various sectors, including manufacturing, customer service, and IT. The concept has since evolved into a more complex landscape, including facets like offshoring and nearshoring.