Which of the following is true about outsourcing?
A)It increases budgetary instability due to the level of risk involved.
B)It saves both direct and indirect management time.
C)It creates diseconomies of scale.
D)It guarantees a higher level of quality than that provided in-house.

Question

Quizplus · Accepted Answer

Outsourcing can save direct and indirect management time by delegating certain tasks or functions to external vendors or providers. This can allow the company to focus on core competencies and strategic initiatives while the outsourcing partner handles routine activities. However, outsourcing also involves some level of risk and may require careful vendor selection and ongoing management to ensure quality and performance. It does not necessarily guarantee a higher level of quality than in-house alternatives and may create economies of scale if implemented effectively.

Which of the Following Is True About Outsourcing