Certified Healthcare Leader (CHL) Exam 2025 – 400 Free Practice Questions to Pass the Exam

The term 'outsource' primarily refers to engaging external providers for products or services. This practice allows organizations to leverage the expertise and resources of third-party vendors to carry out functions or provide goods that may not be core to their business operations. Outsourcing can improve efficiency, reduce costs, and enable organizations to focus on their primary activities by delegating certain tasks to specialized external providers.

In contrast, the other choices do not accurately capture the essence of outsourcing. Providing services to another company refers more to a business partnership rather than outsourcing, which involves an external entity taking on functions for another. Employing more internal staff suggests an increase in workforce rather than outsourcing tasks externally. Lastly, while outsourcing can sometimes lead to reduced staff numbers, its primary intent is not to lower costs through workforce reduction, but rather to optimize resources and operations through strategic external collaboration.