How does outsourcing improve an organization's utilization of assets?
A) by allowing a company to completely eliminate its IS department, which will reduce its payroll costs
B) by allowing the company to sell assets to outsourcers and improve their cash position
C) by eliminating the expense of keeping up with the latest technology and, thus, eliminate the drain on cash reserves
D) Both B and C above are correct.

Question

Quizplus · Accepted Answer

Outsourcing can improve an organization's utilization of assets by allowing the company to sell assets to outsourcers, improving their cash position (B), and by eliminating the expense of keeping up with the latest technology, thus reducing the drain on cash reserves (C).

How Does Outsourcing Improve an Organization's Utilization of Assets