Which of the following statements 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 invariably leads to diseconomies of scale.
D) It guarantees a higher level of quality than that provided in-house.

Question

Quizplus · Accepted Answer

Outsourcing, when done efficiently, can save both direct and indirect management time by allowing the company to focus on core competencies and leave non-core functions to specialized providers. Option A is incorrect as outsourcing can actually help to reduce budgetary instability by offering cost-saving opportunities. Option C is incorrect as outsourcing can provide economies of scale. Option D is also incorrect as outsourcing quality can vary depending on the provider and contractual agreements.

Which of the Following Statements Is True About Outsourcing