Certified Relocation Professional (CRP) Practice Exam

The practice of using outside service providers to manage parts of a company's relocation programs is commonly referred to as?

1. Expense management

2. Externalizing

3. Vendor management

4. Outsourcing

The correct answer is: Outsourcing

The practice of using outside service providers to manage parts of a company's relocation programs is commonly referred to as outsourcing. This concept involves hiring third-party vendors to perform tasks or manage processes that could be handled in-house. Companies often choose to outsource to reduce costs, leverage specialized expertise, and increase efficiency. Outsourcing in the context of relocation can include various services such as handling logistics, managing temporary housing, providing relocation counseling, or coordinating moving services. By outsourcing these components, organizations can focus on their core business functions while relying on experts in the relocation field to ensure a smooth transition for employees. The other terminology in the choices relates to different aspects of business management. For example, expense management typically refers to the process and strategies used to control costs and monitor expenses. Vendor management focuses on establishing relationships and managing contracts with third-party suppliers but does not specifically imply transferring functions to them. Externalizing could describe the act of moving processes outside the organization, but it is not as widely recognized or specific as the term outsourcing.