The practice of contracting custom software development to an outside firm is commonly referred to as outsourcing. scaling. utility computing. application integration. service-oriented architecture.

The practice of contracting custom software development to an outside firm is commonly referred to as outsourcing.

Explanation:

Outsorcing is when a company hires another brand or firm  to perform a service, develop something (like software in this example), or manufacture goods that cannot longer be manufactured by the company, for example. It is usually a cost-cutting business strategy.