Purchasing goods/services from external suppliers.

• A. Outsourcing
• B. Offshoring
• C. Server Factory
• D. Contributor Factory

Answer: (A)

Outsourcing is the practice of obtaining goods or services from external suppliers rather than producing them in-house. This directly describes purchasing from outside firms, allowing a company to leverage specialized capabilities, reduce costs, or focus on its core activities. Offshoring, by comparison, centers on moving production to another country and isn’t inherently about contracting with external providers. The other terms aren’t standard ways to describe the act of buying from external suppliers, so they don’t fit as well.