Final answer:
Outsourcing is the process where a firm contracts out a business process or activity to an external supplier to take advantage of lower labor costs.
Step-by-step explanation:
The process where a firm contracts out a business process or activity to an external supplier is known as outsourcing. This practice involves hiring labor from sources outside of the company or outside of the nation in which the company is located. Often, outsourcing involves contracting jobs to an outside source, often in another country, to take advantage of lower labor costs.