Outsourcing suppliers can often provide economies of scale, especially for hardware and software, that may not be available to the client alone. Which of the following benefits does this offer an organization?
A)Reduction in fixed and recurrent costs
B)Increased flexibility
C)Increased accountability
D)Access to specific skills

Question

Outsourcing suppliers can often provide economies of scale, especially for hardware and software, that may not be available to the client alone. Which of the following benefits does this offer an organization?
A)Reduction in fixed and recurrent costs
B)Increased flexibility  
C)Increased accountability
D)Access to specific skills

Quizplus · Accepted Answer

Companies can use outsourcing to reduce labor costs on projects by avoiding the costs of hiring, firing, and reassigning people to projects or paying their salaries when they are between projects. Outsourcing suppliers often can provide economies of scale that may not be available to the client alone, especially for hardware and software.

Outsourcing Suppliers Can Often Provide Economies of Scale, Especially for Hardware