Outsourcing provides a firm with greater strategic flexibility, reduced risk and increased opportunities to make investments in other value chain activities.

Question

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Outsourcing allows a firm to focus on core competencies while reducing internal costs and risks associated with non-core activities. This provides greater strategic flexibility, reduced risk, and increased opportunities to invest in other value chain activities that can create more value for the firm.

Outsourcing Provides a Firm with Greater Strategic Flexibility, Reduced Risk