Turning over an organizational activity to an outside supplier that will perform it on behalf of the local firm is also called:
A) Captive sourcing
B) Inshoring
C) Offshoring
D) Outsourcing

Question

Quizplus · Accepted Answer

Outsourcing is the act of turning over an organizational activity to an outside supplier that will perform it on behalf of the local firm. Captive sourcing refers to setting up a subsidiary or captive unit in another country to perform the work, inshoring refers to bringing a previously outsourced activity back in-house, and offshoring refers specifically to outsourcing to a foreign country. Therefore, the best choice is D. Outsourcing is the correct term for handing over an organizational activity to an external supplier. Captive sourcing refers to the establishment of a subsidiary in a foreign country to perform an activity. Inshoring refers to bringing a supplier from another location within the same country to perform the activity. Offshoring specifically refers to outsourcing to a supplier in a foreign country.

Turning Over an Organizational Activity to an Outside Supplier That