Outsourcing: meaning, definitions and examples
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outsourcing
[ˈaʊtsɔːsɪŋ ]
Definitions
business practice
Outsourcing is the practice of hiring an external company to perform services or create goods that were traditionally done in-house. It is often done to reduce costs, improve efficiency, and focus on core business activities.
Synonyms
contracting out, externalization, subcontracting.
Which Synonym Should You Choose?
Word | Description / Examples |
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outsourcing |
Used when a company hires another company to handle certain tasks or services that could be performed internally. Often used in business and technology sectors.
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contracting out |
Used when a company enters into a formal agreement with another organization to perform a specific task or service. Emphasizes the official nature of the arrangement.
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subcontracting |
Used when a company that has a contract with another company assigns part of the work to a third party. Often seen in construction, manufacturing, and large projects.
|
externalization |
More formal and less commonly used in everyday business language. Often used in academic or strategic discussions about shifting functions to outside entities.
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Examples of usage
- Many companies outsource their customer service to call centers in other countries.
- Outsourcing manufacturing to overseas factories has become a common practice in the modern global economy.
action
To outsource means to contract out a business process or service to another company. It involves transferring some of the workload and responsibilities to an external provider.
Synonyms
delegate, farm out, subcontract.
Which Synonym Should You Choose?
Word | Description / Examples |
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delegate |
Used when giving a task or responsibility to someone else, typically within the same organization. It implies entrusting duties to others while still maintaining overall responsibility.
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subcontract |
Used for hiring another company or individual to complete part or all of a job that has been contracted. Often used in construction, engineering, and similar fields.
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farm out |
Informal term used for giving pieces of work to various people or organizations. It can imply distributing parts of a larger project.
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Examples of usage
- The company decided to outsource their IT support to a specialized firm.
- Many startups choose to outsource tasks like marketing and accounting to focus on their core operations.
Interesting Facts
Etymology
- The term 'outsourcing' emerged in the 1980s, combining 'out' and 'source,' pointing to sourcing work outside the company.
- Before 'outsourcing,' companies mainly relied on in-house teams; the change reflected a shift in business strategies.
Economic Impact
- Outsourcing can lower costs for businesses, but it has sparked debates on job losses in the local workforce.
- Many companies have outsourced operations to countries with lower labor costs, boosting global trade.
- The industry that benefits most from outsourcing includes IT, customer service, and manufacturing sectors.
Cultural Perspectives
- In some cultures, outsourcing has led to a reliance on global relationships and interdependence among nations.
- Outsourcing practices can vary significantly, reflecting cultural attitudes toward work and employment.
Technology
- Advancements in technology have made it easier for businesses to outsource tasks to remote locations.
- Cloud computing plays a significant role in facilitating efficient outsourcing by allowing streamlined communication.
Environmental Considerations
- Outsourcing can sometimes lead to negative environmental impacts due to increased transportation and carbon footprints.
- Conversely, partnering with overseas sustainability firms has emerged as a beneficial outsourced service.
Translations
Translations of the word "outsourcing" in other languages:
🇵🇹 terceirização
🇮🇳 आउटसोर्सिंग
🇩🇪 Auslagerung
🇮🇩 alih daya
🇺🇦 аутсорсинг
🇵🇱 outsourcing
🇯🇵 アウトソーシング
🇫🇷 externalisation
🇪🇸 subcontratación
🇹🇷 dış kaynak kullanımı
🇰🇷 아웃소싱
🇸🇦 الاستعانة بمصادر خارجية
🇨🇿 outsourcing
🇸🇰 outsourcing
🇨🇳 外包
🇸🇮 zunanje izvajanje
🇮🇸 úthýsing
🇰🇿 аутсорсинг
🇬🇪 აუტსორსინგი
🇦🇿 autsorsinq
🇲🇽 subcontratación
Word Frequency Rank
With rank #17,661, this word belongs to specialized vocabulary. While not common in everyday speech, it enriches your ability to express complex ideas.
- ...
- 17658 potter
- 17659 audiovisual
- 17660 parched
- 17661 outsourcing
- 17662 clapping
- 17663 dishonor
- 17664 inalienable
- ...