Outsourcing
Hiring a party outside a company to perform services that were performed internally
Real World Example
Outsourcing became significant in recent decades as companies sought to reduce costs and increase efficiency by hiring external parties to perform tasks. This trend responded to global competition and the need for businesses to focus on their core competencies. For example, many companies outsourced manufacturing to countries with lower labor costs, like China or India, allowing them to offer products at lower prices. Today, outsourcing remains important as it affects various sectors, from customer service to IT support, impacting job availability and economic structures worldwide. A real-life example is when a local company outsources its customer service to another country, which can affect local job opportunities but also leads to lower costs for consumers.
