The most common reason for outsourcing is to reduce costs. Another major reason for outsourcing is to
A) gradually exit the U.S. product market.
B) share significant R&D investments.
C) develop new goods and services.
D) gain access to special skills for higher quality output.

Question

Quizplus · Accepted Answer

Outsourcing can provide access to special skills and expertise that may not be available in-house, resulting in higher quality output. While cost reduction is a common reason for outsourcing, it is not the only reason. The other options, such as gradually exiting the U.S. product market and sharing R&D investments may be valid reasons for some companies, but are not as commonly cited as reasons for outsourcing. Developing new goods and services could be a potential benefit of outsourcing, but it is not necessarily the main reason companies turn to outsourcing.

The Most Common Reason for Outsourcing Is to Reduce Costs