Title: Outsourcing | Examples & Meaning | InvestingAnswers
Headings: Outsourcing
Outsourcing
What Is Outsourcing?
What Are Some Common Terms for Outsourcing?
Are Outsourcing and Subcontracting the Same?
Outsourcing vs. Offshoring
Examples of Outsourcing
Famous Companies That Outsource
Common Outsourcing Models & Pricing
Staffing Model
Fixed Price Model
Cost Reimbursable Model
Time and Materials Model
Consumption-Based Pricing Model
Profit-Sharing Pricing Model
Incentive-Based Pricing Model
Shared Risk-Reward Pricing Model
Is Outsourcing Good or Bad?
Advantages of Outsourcing
Disadvantages of Outsourcing
How Does Outsourcing Affect the US Economy?
Are Outsourcing and Globalization the Same?
How Outsourcing Affects Developing Countries
Negative Effects of Outsourcing on Developing Countries
Personalized Financial Plans for an Uncertain Market
Ask an Expert about Outsourcing
Can Outsourcing Work for Small Businesses?
Mark Herman, CFP

Content: Reduced costs such as overhead, staff, equipment, and technology
Work may be less expensive than hiring staff members
May have greater access to experts in the field
Tasks may reach completion more quickly
Companies can focus on revenue-driving work
Assistance in planning and mitigating against potential risks
Ability to take on more projects that work towards the company’s mission and goals
Disadvantages of Outsourcing
There are many cons of outsourcing, including: Complex contracts between companies with possible hidden costs
Access to confidential data can cause security threats or data breaches
Communication challenges that cause project delays and slower turnaround time
Language and cultural barriers
Time zone differences
Little control over quality from the originating company
Less knowledge of the industry or domain
Public backlash or moral dilemmas
How Does Outsourcing Affect the US Economy? The effects of outsourcing on the US economy can be viewed from multiple lenses. Outsourcing enables companies to lower their production costs and the savings can be passed on to consumers who will make more purchases. Outsourcing helps US companies be more globally competitive. However, outsourcing can also hurt the US economy if many people lose their jobs. Individuals and families without stable incomes aren’t as likely to make discretionary purchases. Are Outsourcing and Globalization the Same? Globalization refers to the interdependence of various countries in terms of economies, cultures, jobs, products, information, technology, and populations. Global outsourcing is just one factor that causes globalization.