Management Information System (MIS) Practice Exam

What term best describes the process of moving business processes or tasks to another company?

1. Offshoring

2. In-sourcing

3. Outsourcing

4. Exporting

The correct answer is: Outsourcing

The term that best describes the process of moving business processes or tasks to another company is outsourcing. This involves contracting a third-party organization to handle specific business functions or services that could be performed in-house. Companies often choose to outsource certain operations to save costs, increase efficiency, and focus on their core competencies. Outsourcing can encompass a variety of functions, such as customer service, IT services, manufacturing, and human resources, allowing businesses to leverage specialized expertise and resources that the outsourcing partner may offer. In contrast, offshoring refers specifically to relocating business processes to another country, often to take advantage of lower labor costs, while insourcing involves bringing processes back in-house or utilizing internal resources to perform tasks. Exporting, on the other hand, is the process of selling goods or services to a foreign market, which does not align with the concept of transferring processes to another company.