Question

Xinsoft Analytic embarks on a data mining project that requires a large count Human Resources which the organization lacks. To acquired the manpower, the company enters an agreement with an external vendor. This is an example of __________.

Answer 1

Xinsoft Analytic's decision to hire an external vendor for a data mining project exemplifies 'outsourcing,' which is hiring an outside firm to perform internal tasks, sometimes in other countries.

Step-by-step explanation:

When Xinsoft Analytic requires additional manpower for a data mining project and decides to enter an agreement with an external vendor to acquire the needed human resources, this is an example of outsourcing. This is the process by which companies hire outside contractors to perform tasks that were traditionally performed internally. Outsourcing can be done within the same country or may involve hiring firms located abroad, which is also related to but different from offshoring—the latter being the relocation of entire company operations to foreign countries to capitalize on lower labor costs.