contract out (of)

1. To contract out something (or contract something out) is to arrange for another company to do some work instead of your company.
Examples of use:
a) We are contracting out our web design service to a local web designer.
b) Our government has contracted out hospital cleaning services to the private sector.
c) News headline: Toronto votes to contract out garbage pickup.
d) They have voted to contract their garbage collection out to private companies.

2. To contract out of something is to decide not to be included in an official plan or scheme. British English.
Examples of use:
a) I have contracted out of the company pension plan.
b) You can contract out of the state pension scheme.