Which operation would most likely utilize outsourcing?

Outsourcing is a business practice where a company contracts external organizations to handle specific tasks or functions rather than managing them internally. The most common operations that utilize outsourcing typically involve non-core activities that can be performed more efficiently or at a lower cost by external specialists.

Contracting out customer service functions is a prime example of outsourcing because it allows companies to focus on their main business objectives while leveraging the expertise and cost advantages of specialized service providers. By turning over customer service operations to an external provider, businesses can enhance service quality, reduce costs, and achieve greater operational flexibility. This practice is particularly beneficial in industries where customer interaction is essential, yet not a core aspect of the company's primary offerings.

In contrast, options like manufacturing core products internally, investing in new product development, and establishing a new factory tend to involve key resources and competencies that are central to a company’s value proposition. These activities usually require tight control over quality, production processes, and strategic alignment, making them less suitable for outsourcing.