Which term refers to transferring certain business functions outside the organization so the company can focus on core activities?

Which term refers to transferring certain business functions outside the organization so the company can focus on core activities?

• A. Ownership interest
• B. Overseas premium
• C. Outplacement
• D. Outsourcing

Answer: (D)

Outsourcing means shifting certain business functions to external providers so the company can concentrate on its core activities. By delegating tasks like IT support, payroll, or manufacturing, the organization can allocate more time and resources to what it does best, often gaining access to specialized expertise and potentially reducing costs. The other terms describe different ideas: ownership interest is about having an equity stake, an overseas premium isn’t a standard HR concept related to function transfer, and outplacement focuses on helping employees transition to new jobs after layoffs. So outsourcing most directly captures the move of functions outside the organization to sharpen focus on essential activities.

Outsourcing means shifting certain business functions to external providers so the company can concentrate on its core activities. By delegating tasks like IT support, payroll, or manufacturing, the organization can allocate more time and resources to what it does best, often gaining access to specialized expertise and potentially reducing costs. The other terms describe different ideas: ownership interest is about having an equity stake, an overseas premium isn’t a standard HR concept related to function transfer, and outplacement focuses on helping employees transition to new jobs after layoffs. So outsourcing most directly captures the move of functions outside the organization to sharpen focus on essential activities.