Which concept involves delegating production activities to independent suppliers outside the company?

Which concept involves delegating production activities to independent suppliers outside the company?

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

Answer: (C)

Outsourcing is the practice of delegating production activities to independent suppliers outside the company. It means contracting external firms to handle part or all of the production process instead of doing it in-house. This can help reduce costs, access specialized capabilities, and allow the business to focus on its strengths. The other terms describe where the work is done or who does it: offshoring moves production to a distant country, nearshoring moves it to a nearby country, and insourcing brings production back inside the company. So delegating to external suppliers is outsourcing.

Outsourcing is the practice of delegating production activities to independent suppliers outside the company. It means contracting external firms to handle part or all of the production process instead of doing it in-house. This can help reduce costs, access specialized capabilities, and allow the business to focus on its strengths. The other terms describe where the work is done or who does it: offshoring moves production to a distant country, nearshoring moves it to a nearby country, and insourcing brings production back inside the company. So delegating to external suppliers is outsourcing.