What is the term for hiring others to perform some noncore activities and decision making in a company's value chain?

Hiring others to perform noncore activities and decision-making in a company's value chain is referred to as outsourcing. This practice allows companies to focus on their primary business functions while delegating certain tasks to external parties that may specialize in those areas. Outsourcing can lead to cost savings, efficiency improvements, and access to expertise that may not be available internally.

Outsourcing typically involves contracting with third-party service providers to handle functions such as customer service, IT support, manufacturing, or even marketing. By outsourcing these noncore activities, organizations can redirect their resources toward strategic initiatives that better align with their core competencies and long-term goals.

The other options represent different concepts. Offshoring refers specifically to relocating business processes to another country, often to take advantage of lower labor costs but does not imply that the activities are outsourced. Insourcing is the opposite of outsourcing, where a company performs activities in-house rather than seeking external partners. Nearshoring involves moving business processes to a nearby country, often for logistical reasons, but is still focused on the geographic aspect rather than the outsourcing of resources.