When a company decides to outsource its services, it is said to be undertaking the process of contracting out. However, there are several synonyms for the term that can be used interchangeably, depending on the context. For instance, subcontracting refers to the practice of hiring a third-party vendor to handle a specific part of a project or business. Privatization is another synonym that describes the process of transferring ownership or control of a government service to private entities. Franchising is a similar term that involves licensing a company's products or services to a third-party operator. Ultimately, whether a business decides to outsource, subcontract, privatize, or franchise, the objective is to streamline operations and boost profitability.