Which term describes the practice of hiring other companies or individuals to produce goods or services?

• A. Telecommute
• B. Outsourcing
• C. Globalization
• D. Local sourcing

Answer: (B)

Outsourcing is the practice of contracting work to external companies or individuals, rather than doing it in-house. This can involve manufacturing, software development, customer support, or other services. The goal is often to access specialized expertise, reduce costs, or improve efficiency by letting a third party handle a task that the organization would otherwise do itself. Telecommuting means employees work remotely for the same company, globalization refers to the broader trend of increased cross-border trade and interaction, and local sourcing means obtaining goods or services from nearby providers. Because outsourcing specifically involves hiring others to produce goods or services, it best fits the description.