What does Outsourcing mean?

• A. Hiring workers within the companys own payroll
• B. Automating production with machines
• C. Hiring other companies or individuals to produce goods or services
• D. Importing materials from overseas

Answer: (C)

Outsourcing means contracting with other companies or individuals to perform work or provide services that would normally be done in-house. By handing tasks to external specialists, a business can focus on its core activities while tapping into external expertise, often at lower cost or with greater flexibility. This is different from keeping workers on the company payroll (insourcing) or simply using machines to carry out tasks (automation). It’s also not about importing materials from overseas, which is procurement or sourcing. Outsourcing is about the arrangement of getting work done outside the organization by external providers.