What is outsourcing?

What is outsourcing?

• A. In-house production with no external partners.
• B. Producing goods by expanding internal capabilities.
• C. Hiring an external party to perform services or create goods traditionally done in-house.
• D. Outsourcing is illegal.

Answer: (C)

Outsourcing means hiring an external party to perform services or produce goods that would normally be done in-house. This lets a company tap outside expertise or capacity, often to reduce costs, access specialized skills, or free internal resources to focus on core activities. For example, a business might outsource payroll processing or manufacturing components to a supplier. The other ideas describe keeping everything inside the company or expanding internal capabilities, which is the opposite of outsourcing, and calling outsourcing illegal is simply incorrect.

Outsourcing means hiring an external party to perform services or produce goods that would normally be done in-house. This lets a company tap outside expertise or capacity, often to reduce costs, access specialized skills, or free internal resources to focus on core activities. For example, a business might outsource payroll processing or manufacturing components to a supplier. The other ideas describe keeping everything inside the company or expanding internal capabilities, which is the opposite of outsourcing, and calling outsourcing illegal is simply incorrect.