Outsourcing is done to ________.
A) diversify the business portfolio
B) increase costs for outsourcing vendors
C) cap an organization's financial exposure
D) enhance management's focus on nonessential functions
E) increase systems integrity

Question

Quizplus · Accepted Answer

Outsourcing allows an organization to cap their financial exposure by transferring the risk and responsibility for a particular function to an external vendor. This reduces the risk of financial loss for the organization. Therefore, option C is the correct answer. The other options are not the main reasons for outsourcing.

Outsourcing Is Done to ________