What term describes the contracting of service to external companies specializing in particular tasks?

Outsourcing is the correct term for contracting services to external companies that specialize in particular tasks. This practice involves a business delegating specific functions, processes, or services to outside vendors instead of performing them in-house. Companies often choose to outsource for several reasons, including cost reduction, accessing specialized expertise, focusing on core business areas, and improving efficiency. By partnering with specialists, companies can leverage the capabilities of those who are more skilled or equipped to handle specific tasks, allowing them to benefit from better quality work and innovations derived from industry expertise.

Insourcing refers to bringing processes in-house that were previously outsourced, which is the opposite of outsourcing and does not involve external companies. Subcontracting is similar to outsourcing but typically involves hiring a third party to complete part of a larger contract rather than outright delegating tasks to independent firms or specialists. Freelancing usually pertains to individual contractors working independently on tasks or projects, which does not encompass the broader practice of businesses outsourcing entire services to specialized organizations.