Which of the following is true about outsourcing?

Question

Quizplus · Accepted Answer

Outsourcing is the process of hiring an external party to perform tasks that were previously done in-house. The decision to outsource should be based on whether a task is a part of the firm's core competence or not. If it is not a part of the firm's core competence, then outsourcing may be a good option to reduce costs and increase efficiency. However, if it is a part of the firm's core competence, then outsourcing could lead to a loss of competitive advantage and should be avoided. Therefore, option C is the correct answer. Anything that the organization believes is not part of their core competency becomes a candidate for outsourcing.

Which of the Following Is True About Outsourcing