All of the options listed are true of outsourcing. Outsourcing involves transferring activities that were previously done internally to external vendors who specialize in those tasks. By doing so, the outsourcing firm can focus on its core competencies and key success factors, while also benefiting from increased efficiency and cost savings. Therefore, option E is the best choice.

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Outsourcing

Question 46

Multiple Choice

Outsourcing

A) transfers traditional internal activities to outside vendors
B) utilizes the efficiency which comes with specialization
C) lets the outsourcing firm focus on its key success factors
D) None of the above are true of outsourcing.
E) All of the above are true of outsourcing.

Correct Answer: