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Question

Outsourcing

(a) Restricts only to the contracting out of Information Technology Enabled Services (ITES)

(b) Restricts only to the contracting out of non-core business processes

(c) Includes contracting out of manufacturing and R&D as well as service processes-both core and non-core-but restricts only to domestic territory

(d) Includes off-shoring

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Solution

Outsourcing refers to the process of contracting out non-core activities of a company to external agencies. It involves outsourcing those activities which are not so essential and which are less important for a company. Thus, option (b) is correct, as it states that outsourcing is restricted only to contracting out non-core (less important) business activities.

Hence, the correct answer is option (b).


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