The strategic process of shifting non-core business activities to external third-party suppliers is known as:
AInsourcing
BOutsourcing
COffshoring
DVertical Integration
Explanation
• Outsourcing is the practice of contracting out internal operational functions or business processes to external specialist vendors.
• It allows organizations to focus core resources on strategic competencies while reducing fixed overhead expenses.
• Offshoring specifically refers to relocating business functions overseas, whether managed internally or outsourced.
Exam Relevance
- Topic: Operations Management
- Subtopic: Strategic Management

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