Investor Glossary-outsourcingInvestor Glossary-outsourcingInvestor Glossary-outsourcingInvestor Glossary-outsourcingInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Outsourcing

The HTML to link to this page
 

Outsourcing is the practice of companies transferring work to outside sources to increase efficiency and cut costs. Outsourcing differs from simply buying products and services from a supplier. Rather than dealing at arms-length, outsourcing usually entails substantial coordination, if not outright management, of the external vendor's activities. In the early 21st century, outsourcing had one other, strongly negative, connotation: the displacement of U.S. staff by foreign workers. For example, a stereotypical example of outsourcing might be the use of a call center in India for making airline reservations for a U.S. carrier. Those opposing outsourcing argue that it destroys American jobs and erodes the power of labor unions. Proponents of outsourcing say, however, that outsourcing increases productivity and profits; while causing some short-term displacement, outsourcing ultimately enhances economic opportunity for all workers. Outsourcing is sometimes used loosely as a synonym for globalization, but outsourcing is a narrower term: unlike globalization, outsourcing does not comprehend all types of economic interdependence between countries.



Rate this outsourcing definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, quality assurance, 144a, VIX, limit order, inflation, labor relations, reverse mortgage, in escrow, diluted share, ex-dividend, wholly-owned subsidiary, APR, deferred tax, FTSE, 1031 exchange, ex-dividend date, per diem, open position, debt service coverage, retained earnings, margin rate, Zero Cost Collar, balance sheet, liquidity ratio, implied volatility, required rate of return, irrevocable trust, 401a, dividends payable, option premium, stock split, real GDP, Key Rate Duration, phantom income, FICO score, annual return, stock market close, 1035 exchange, cancelled check, command economy, EBITDA, deferred revenue, covered put, class C shares, current ratio, LIBOR, risk management, minority interest


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use