Question

Choose the correct option for the following:
Outsourcing

Options

• restricts only to the contracting out of Information Technology.

• estricts only to the contracting out of non-core business.

• includes contracting out of manufacturing and R&D as service processes-both core and non-core-but restricts only to domestic territory

• includes off-shoring.

Answer 1

Outsourcing refers to the process of contracting out non-core activities of a company to external agencies. It involves outsourcing those activities which are not so essential and which are less important for a company. Thus, estricts only to the contracting out of non-core business is correct, as it states that outsourcing is restricted only to contracting out non-core (less important) business activities.

Hence, the correct answer is estricts only to the contracting out of non-core business.