Contracted-out
The term 'contracted-out' refers to the practice of outsourcing specific responsibilities, tasks, or services to external organizations or companies, instead of handling them internally. This is often done to improve efficiency, reduce costs, or benefit from specialized expertise that the contracting organization may lack.
Contracted-out meaning with examples
- The city government decided to have its road maintenance contracted-out to a private firm, hoping to enhance service quality and reduce expenses for taxpayers in the long run.
- In the tech industry, many companies find it beneficial to have software development contracted-out to firms that specialize in cutting-edge technologies, allowing them to focus on their core business.
- To streamline operations, the healthcare provider opted to have patient billing contracted-out to a third-party service, which specialized in medical billing processes and compliance.
- In an effort to manage costs effectively, several manufacturing sectors have increasingly contracted-out logistics, enabling them to benefit from the expertise of specialized logistics firms while keeping their overheads low.
- Due to budget constraints, the local school district is exploring options to have its cafeteria services contracted-out, aiming to improve food quality without incurring additional costs.