Outsourcing

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Outsourcing is the delegation of a function or department within a company, organization, or government agency to an outside firm. Outsourcing can be as simple as hiring an outside firm to perform cleaning or landscaping services to an office, or as extensive as hiring an outside firm to manufacture goods for a company. Outsourcing of government services is often referred to as privatization. Outsourcing or privatization of certain support services within an institution usually does not result in job loss, and sometimes even results in additional jobs being created. In contrast, offshoring is an unpopular form of outsourcing where such departments are sent overseas, usually resulting in jobs being sent to another country. Donald Trump has vowed to make it more difficult for companies to offshore their operations. Sometimes outsourcing is used as an alternative to lay offs, raise freezes, and other actions that negatively affect institutional support employees. Unions often viciously resist any efforts to outsource, even when outsourcing would be beneficial for the affected employees.

See also