In the long run, firms must approach outsourcing decisions based on cost alone to strengthen their core capabilities.

Question

Quizplus · Accepted Answer

While cost is certainly an important factor to consider when outsourcing, firms should also consider the potential impacts on their core capabilities, quality control, intellectual property, and customer relationships. Focusing solely on cost can lead to short-term savings but weaken the company in the long run.

In the Long Run, Firms Must Approach Outsourcing Decisions Based