Outsourcing
Hiring a party outside a company to perform services that were performed internally
Real World Example
In the late 20th and early 21st centuries, outsourcing became a significant trend as companies sought to reduce costs and increase efficiency by hiring external parties to handle tasks that were traditionally done in-house. This shift was driven by technological advancements, globalization, and the need to stay competitive in a rapidly changing market. Outsourcing allowed businesses to focus on their core activities while benefiting from the expertise and cost savings of specialized service providers. Today, outsourcing continues to be relevant as companies outsource tasks like customer service to overseas call centers, which can impact job availability locally. For example, if a local business outsources its IT support to another country, it might save money but could result in fewer local IT jobs, affecting the community's employment opportunities.
