Understanding the Phrasal Verb "Contract Out"
In the world of business and labor relations, you will frequently encounter the phrasal verb contract out. Whether a company is looking to save money by hiring external help or an employee is choosing how their union dues are allocated, this term describes a specific type of decision-making process. By exploring its two distinct meanings, you can better understand how businesses operate and how individuals interact with professional organizations.
The Two Primary Meanings of "Contract Out"
The term contract out is used in two very different contexts. It is important to look at the surrounding sentence to determine which definition is intended.
1. Outsourcing Business Tasks
In a business context, to contract out means to assign a job, project, or service to an outside provider rather than handling it within the company. Companies often do this to reduce overhead costs, gain access to specialized skills, or increase efficiency. When a business decides to contract out work, they are effectively shifting the responsibility to an external contractor or agency.
2. Refusing Political Union Levies
In the context of labor unions, contract out refers to an individual member's choice to withhold that portion of their union dues that is designated for political activities. If a worker disagrees with the political spending of their union, they may choose to contract out of those specific payments, ensuring their money only goes toward collective bargaining and administrative costs.
Usage and Grammar Patterns
Grammatically, contract out is a phrasal verb that is almost always used as a transitive verb. This means it requires an object to complete its meaning.
- Structure: Subject + contract + [object] + out.
- Example: The firm decided to contract out its cleaning services to a specialized janitorial company.
- Alternative structure: Subject + contract + out + [object].
- Example: Many tech companies now contract out their customer support to call centers abroad.
When used in the sense of union dues, it is often followed by the preposition "of":
- She decided to contract out of the political fund because she did not support the union’s current lobbying efforts.
Common Mistakes to Avoid
The most common mistake learners make is confusing "contracting out" with simply "hiring." While hiring implies bringing an employee into the company's payroll, contracting out implies that the worker remains employed by a third-party entity. Do not use this term if you are referring to a direct internal hire.
Additionally, be careful with the word order. While you can say "They contracted the work out," you should avoid saying "They contracted out the work out." Including the word "out" twice is a redundant and grammatically incorrect error.
Frequently Asked Questions
Is "contract out" the same as "outsource"?
Yes, in the context of business operations, contract out and "outsource" are synonyms. They are often used interchangeably to describe moving tasks to an outside vendor.
Can I use "contract out" for household chores?
While technically possible, it sounds overly formal. You would usually say "hire" or "outsource" for home projects. Contract out is best reserved for professional or organizational settings.
Is it formal or informal?
Contract out is considered standard, professional English. It is frequently used in business reports, legal documents, and news articles, so it is a very safe term to use in a professional environment.
Conclusion
Whether you are discussing global business strategies or navigating the complexities of union membership, contract out is a versatile and useful phrasal verb. By understanding its two distinct meanings—assigning work to external parties and opting out of specific union fees—you will be well-equipped to use this term accurately in both professional and political discussions. Keep practicing the grammar patterns, and you will soon find it a natural addition to your vocabulary.