Which of the following is TRUE about outsourcing?
A) Outsourcing allows firms to be more flexible, and requires minimal coordination.
B) Outsourcing allows firms to concentrate on their core competencies.
C) Outsourcing strengthens the creative and innovative functions within the firm.
D) Outsourcing is only effective when it includes all support activities.

Question

Quizplus · Accepted Answer

Outsourcing allows firms to focus on their core competencies by providing access to specialized expertise, resources, and capabilities that may not be available internally. This allows firms to improve operational efficiencies, reduce costs, and increase innovation. Option A is incorrect, as outsourcing may require significant coordination with external vendors. Option C is incorrect, as outsourcing primarily involves transferring routine functions to external vendors, and not necessarily creative and innovative functions. Option D is incorrect, as outsourcing may not necessarily include all support activities, but only those that can be effectively performed by external vendors at a lower cost or with better quality.

Which of the Following Is TRUE About Outsourcing