Final answer:
Outsourcing in small companies typically involves hiring outside vendors for training to save costs and access expertise. Globalization has facilitated this practice as compliance with trade agreements and cost-saving measures drive business strategies. It contrasts with offshoring, which physically relocates operations to other countries.
Step-by-step explanation:
In smaller companies, the practice of outsourcing training to outside vendors is commonly adopted due to various advantages such as cost-efficiency and access to expert knowledge. Outsourcing is the process of hiring outside contractors to perform tasks that a company once conducted internally, which can include services like accounting, human resources, and in this case, employee training. One of the driving forces behind this trend is globalization, which has made offshoring and outsourcing more accessible and attractive as companies seek to reduce high wage costs stemming from high cost of living areas in developed countries. As global trade agreements facilitate the movement of operations, outsourcing becomes a viable option to cut costs while maintaining or enhancing service quality.
In contrast, offshoring involves moving some of a company's operations to countries with cheaper labor, which is more about the geographic relocation of processes rather than contracting out services. In the modern business landscape, offsourcing and offshoring have become major factors influencing job availability and the demand for certain skill sets. It's important for workers to seek additional training and development opportunities, whether through employer-provided initiatives or external sources, to remain competitive and adapt to changing market demands.