FLVS US Government Module 8 Discussion-Based Assessment (DBA) Practice Test

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What does outsourcing refer to in business terms?

The hiring of an outside party for work

Outsourcing refers to the practice of hiring an outside party or external organization to perform tasks, services, or functions that are typically handled in-house. This can include a wide range of activities, such as manufacturing, customer service, IT support, and more. The primary goal of outsourcing is often to improve efficiency, reduce costs, or gain access to specialized expertise that may not be available within the company.

By engaging an external party, businesses can focus on their core activities while letting specialists manage additional functions, which can lead to enhanced productivity and potentially lower operational costs. This concept is quite prevalent in many industries as companies look for ways to streamline operations and optimize resources.

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Contracting employees directly

Reducing employee hours

Increasing workforce without outsourcing

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