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Supply Chain Management Professional (SCMP) · Question

Which term describes the process of contracting out a business function to a third-party provider, often abroad?

Offshoring involves relocating a business process or portion of a company's operations to another country, typically to reduce costs. It is a common sourcing st

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Question: Which term describes the process of contracting out a business function to a third-party provider, often abroad?

Answer options:

  • Insourcing
  • Reshoring ✅ Offshoring
  • Nearshoring

Correct answer: Offshoring

Explanation: Offshoring involves relocating a business process or portion of a company's operations to another country, typically to reduce costs. It is a common sourcing strategy.

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