Which term best describes transferring a function to an external provider rather than keeping it in-house?

Which term best describes transferring a function to an external provider rather than keeping it in-house?

• A. In-house
• B. Outsource
• C. Insourcing
• D. Delegation

Answer: (B)

Transferring a function to an external provider rather than keeping it in-house is outsourcing. This term specifically means contracting with a third party to handle a business function that was previously done internally, which is exactly the scenario described. Keeping work inside the organization is described as in-house or insourcing, while delegation refers to assigning tasks to another person or unit within the same organization rather than to an external vendor. So outsourcing is the correct descriptor because it highlights obtaining services from outside the organization.

Transferring a function to an external provider rather than keeping it in-house is outsourcing. This term specifically means contracting with a third party to handle a business function that was previously done internally, which is exactly the scenario described. Keeping work inside the organization is described as in-house or insourcing, while delegation refers to assigning tasks to another person or unit within the same organization rather than to an external vendor. So outsourcing is the correct descriptor because it highlights obtaining services from outside the organization.