Outsourcing is a business strategy that involves contracting out certain business activities to external parties. It is a common practice among organizations to outsource non-core business activities in order to focus on their core competencies and reduce costs. The correct answer for this question is option 'A', which states that outsourcing restricts only to the contracting out of non-core business activities. Let's understand why this is the correct answer in detail.

Outsourcing and its Definition:
Outsourcing is the process of delegating specific tasks or operations to external service providers. It is a strategic decision made by organizations to leverage the expertise and resources of external parties to perform certain functions more efficiently and effectively.

The Scope of Outsourcing:
Outsourcing can cover a wide range of activities within an organization. While some organizations may choose to outsource only non-core business activities, others may also opt to outsource certain core functions. The scope of outsourcing can vary depending on the organization's goals, resources, and industry.

Option A: Restricts only to the contracting out of non-core business activities:
This option suggests that outsourcing is limited to the contracting out of non-core business activities. Non-core activities refer to tasks or operations that are not directly related to the organization's primary business function or expertise. For example, an IT company may outsource its accounting or human resources functions to external service providers.

Explanation of Other Options:
- Option B: Includes offshoring - Offshoring refers to the practice of outsourcing business activities to external parties located in a different country. While offshoring is a common form of outsourcing, it is not the only form. Outsourcing can also involve contracting out tasks to local service providers.
- Option C: Restricts only to the contracting out of Information Technology Enabled Services (ITES) - This option suggests that outsourcing is limited to IT-enabled services. However, outsourcing can encompass a wide range of functions beyond IT services.
- Option D: Includes both core and non-core business activities but restricted to only domestic territory - This option suggests that outsourcing can include both core and non-core activities but is limited to the domestic territory. However, outsourcing can involve both domestic and international service providers, depending on the organization's requirements and objectives.

In conclusion, option A is the correct answer as it accurately states that outsourcing restricts only to the contracting out of non-core business activities.