When a company chooses to have another firm perform a business process or service that is part of the company's value chain this is called:
A) Offshoring
B) Disaggregating
C) Outsourcing
D) Disintermediation

Question

Quizplus · Accepted Answer

Outsourcing refers to when a company contracts an external party to perform various business processes or services that were previously performed in-house. This can be a cost-saving measure, as well as a way for the company to focus on its core competencies. Offshoring typically refers to outsourcing to a foreign country, while disaggregating and disintermediation refer to different concepts not relevant to this question.

When a Company Chooses to Have Another Firm Perform a Business