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 those areas in which they can create value.
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 and delegate non-core activities to external vendors, thus increasing efficiency and productivity. This allows firms to concentrate on those areas in which they can create value, leading to overall organizational improvement. Option A is incorrect because effective coordination and communication are essential for successful outsourcing. Option C is incorrect because outsourcing is primarily used for cost savings and efficiency, not innovation. Option D may not always be feasible or necessary depending on the specific outsourcing arrangement.

Which of the Following Is TRUE About Outsourcing