The decision to outsource opens the firm up to certain risks, among them _________ and ________.
A)lower costs; fewer task-specific investments
B)loss of direct control over operations; need to disclose proprietary information
C)access to greater expertise; greater demand variability
D)greater capacity rigidity; tight knowledge control
E)higher marketing costs; small orders

Question

Quizplus · Accepted Answer

Outsourcing can lead to a loss of direct control over operations and may require the firm to disclose proprietary information to the third-party provider, potentially risking its competitive advantage.

The Decision to Outsource Opens the Firm Up to Certain