What does the term “outsourcing” mean when used by the u.s. media? (5 points)

In recent years, outsourcing has become an increasingly popular topic in the US media.

The term refers to the practice of hiring external contractors or companies to perform certain tasks instead of doing them in-house. This practice has been around for decades and is often used as a cost-saving measure by businesses that want to reduce their expenses.

Despite its popularity, however, outsourcing can be a complex topic with many different meanings depending on who you ask. Some people see it as a way to access skilled labor in other countries at lower prices, while others view it as a way to offload less desirable tasks and focus on core competencies.

In this article, we will explore the various meanings of outsourcing as they are used in the US media. We will examine case studies, personal experiences, research, and expert opinions to gain a deeper understanding of what outsourcing means in practice. By the end of this article, you will have a clearer idea of what outsourcing is and how it can benefit your business.

What Is Outsourcing?

At its most basic level, outsourcing refers to the process of hiring an external contractor or company to perform certain tasks on behalf of another business. This can include anything from IT support and software development to marketing and customer service.

One of the main benefits of outsourcing is that it can help businesses save money. By hiring a contractor or company to perform tasks that would otherwise require expensive labor or equipment, businesses can reduce their costs and focus on more important activities. For example, a small business that doesn’t have the resources to develop its own website might outsource this task to a web development company.

Outsourcing can also help businesses access skilled labor in other countries at lower prices. This is particularly true for industries such as IT and software development, where there are many talented workers available in countries like India and China. By hiring contractors or companies from these countries, businesses can take advantage of lower labor costs while still getting high-quality work done.

Another benefit of outsourcing is that it can help businesses focus on their core competencies. If a business has expertise in a particular area but lacks resources or knowledge in another area, outsourcing can be a way to fill these gaps. For example, a marketing agency might outsource IT support or social media management to a contractor or company with these skills.

Case Studies: The Pros and Cons of Outsourcing

There are many different examples of outsourcing in action, each with their own unique benefits and challenges. In this section, we will examine some real-life case studies to give you a better understanding of how outsourcing can work.

Pros: Cost Savings

One of the most compelling reasons for outsourcing is that it can help businesses save money. For example, in 2015, Airbnb decided to outsource its customer service operations to a contractor in India. The company was able to reduce its costs by 30% while still providing excellent customer service.

Another example of cost savings through outsourcing is the case of Walmart. In 2004, the retail giant began outsourcing its IT operations to TCS, an Indian-based contractor. This move allowed Walmart to reduce its IT expenses by 30% and focus on other areas of its business.

Cons: Cultural Differences

While outsourcing can be a great way to save money, it’s not without its challenges. One of the biggest challenges is cultural differences between the two parties involved. When working with contractors or companies from other countries, it’s important to be aware of cultural norms and customs. Misunderstandings can lead to delays and even failure to deliver on project deadlines.

For example, in 2013, Dell suffered a major embarrassment when it accidentally shipped a batch of laptops with the BIOS password set to “DellEMC”.