What does outsourcing generally refer to?

Outsourcing generally refers to the practice of transferring jobs or services to foreign countries, where labor may be less expensive or where specific skills may be more readily available. This approach allows companies to reduce costs and increase efficiency by capitalizing on global labor markets.

The focus on obtaining services or goods from overseas vendors often increases due to the potential for significant cost savings, allowing businesses to reallocate their resources in other ways. This has also been driven by advancements in technology and communication, which make it easier to manage operations and maintain quality standards across borders.

Understanding outsourcing in this context is crucial, especially given its impact on the economy, job market, and globalization.