What is the term for hiring an external organization to handle specific business processes?

The correct term for hiring an external organization to handle specific business processes is outsourcing. Outsourcing allows a business to convert certain operational tasks or functions to an external party, which can often lead to cost savings, increased efficiency, and the ability to focus on core business functions. Companies typically use outsourcing to leverage specialized skills and expertise that may not be available in-house, as well as to reduce operational risks and costs associated with maintaining those functions within the organization.

By contrast, insourcing refers to the practice of utilizing internal resources to perform tasks or functions that might otherwise be outsourced. Offshoring involves relocating business processes or services to another country, often to capitalize on lower labor costs but this does not necessarily entail engaging an external organization within the home country. Subcontracting, while similar, usually refers to a specific contract or arrangement within a project rather than a broader, ongoing outsourcing of processes.

In summary, outsourcing specifically encapsulates the action of engaging an external organization for handling distinct business processes, making it the most accurate choice among the options presented.