Western Governors University (WGU) ITEC2002 D322 Introduction to IT Practice Exam

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What is the definition of outsourcing?

Hiring temporary employees for a short duration

Utilizing resources from an external organization

Outsourcing is defined as utilizing resources from an external organization to perform tasks or provide services that could be done internally. This approach allows organizations to focus on their core competencies while leveraging the expertise, efficiency, and cost-effectiveness of external providers. By outsourcing, companies can access specialized skills and technologies without the overhead costs associated with hiring full-time employees or developing internal capabilities.

In contrast, hiring temporary employees for a short duration primarily involves bringing in additional staff to meet immediate needs rather than relying on external organizations for specific functions. Employing full-time staff for internal projects refers to utilizing in-house personnel and does not involve the external resources characteristic of outsourcing. Investing in new technology for in-house use pertains to improving internal infrastructure and capabilities rather than outsourcing functions or services to an outside entity. Thus, the definition that aligns with outsourcing is effectively capturing its essence in terms of external resource utilization.

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Employing full-time staff for internal projects

Investing in new technology for in-house use

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