What does 'insourcing' refer to in procurement?

Insourcing in procurement refers to the practice of bringing tasks back in-house that were previously outsourced to external suppliers or service providers. This process often occurs when a company decides that it is more efficient or effective to perform certain functions internally rather than relying on third parties. The motivation for insourcing can vary, including desires for greater control over processes, improvements in quality, cost savings, or the ability to rapidly respond to changes in the business environment or market conditions.

In contrast, the other options describe different procurement strategies or practices. Delegating tasks to another organization aligns more with outsourcing, which is the opposite of insourcing. Utilizing external suppliers for core services directly contradicts the concept of insourcing, as it involves moving away from internal capabilities. Contracting foreign services also pertains to outsourcing, specifically to international vendors, which again does not reflect the essence of insourcing. Thus, the focus on reintegrating functions that were previously outsourced makes the correct answer fitting and relevant in the context of procurement strategies.