Blank
______ is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house.

Question

BlackTom AI · Accepted Answer

The prompt asks us to complete a definition of a business arrangement by selecting the term that fits the blank.
Option 1: Insourcing. This word means performing a function internally within an organization, using its own staff and resources. That is the opposite of the scenario described, where the service is provided by another organization, not in-house.
Option 2: Systems. This term refers to the organized combination of components or processes that work together, often within an organization or technology context. It does not specifically describe an arrangement where services are outsourced to an external provider.
Option 3: Outsourcing. This term accurately matches the described arrangement: one organization contracts out a service to another organization that chooses not to perform it internally. The definition aligns with the concept of delegating a function to an external supplier for efficiency, cost, or strategic reasons.
Reassessing each option, the first two either convey in-house execution (insourcing) or a broad concept not tied to external provision (systems), while outsourcing directly captures the external provision aspect described in the blank.

Blank ______ is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house.

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