One of the reasons outsourcing is undertaken is to ________.
A)reduce an organization's control over functions
B)increase costs for the outsourcing vendor
C)cap an organization's financial exposure
D)enhance management's focus on nonessential functions

Question

Quizplus · Accepted Answer

Outsourcing can be used to cap an organization's financial exposure by transferring some of the financial risk to an outsourcing vendor. This can be especially true in cases where the outsourcing vendor is responsible for certain functions such as IT infrastructure or human resources. By outsourcing these functions, an organization can create a more stable financial environment by reducing fixed costs and making expenditures more variable.

One of the Reasons Outsourcing Is Undertaken Is to ________