Although the fixed cost achieved through outsourcing does cap exposure,it also removes the benefits of economies of scale.

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When a business outsources a certain task or function, they usually pay a fixed cost to the outsourcing provider, which can limit their financial exposure. However, outsourcing also means that the organization may miss out on the economies of scale that come with performing the activity in-house. For instance, when a business keeps a certain function in-house, it can often leverage economies of scale to reduce unit costs and increase efficiencies.

Although the Fixed Cost Achieved Through Outsourcing Does Cap Exposure,it