Which term describes getting other businesses to undertake work that was previously done in-house?

Which term describes getting other businesses to undertake work that was previously done in-house?

• A. Outsourcing
• B. Nearshoring
• C. Offshoring
• D. Insourcing

Answer: (A)

Outsourcing describes getting other businesses to undertake work that was previously done in-house. By contracting external firms to handle activities, a company can often reduce costs, access specialist skills, and focus more on its main strengths. Nearshoring and offshoring are just variations of outsourcing—bringing work to nearby or distant locations—while insourcing means keeping the work inside the company.

Outsourcing describes getting other businesses to undertake work that was previously done in-house. By contracting external firms to handle activities, a company can often reduce costs, access specialist skills, and focus more on its main strengths. Nearshoring and offshoring are just variations of outsourcing—bringing work to nearby or distant locations—while insourcing means keeping the work inside the company.