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.
E) It increases implementation risk.

Question

Quizplus · Accepted Answer

Outsourcing saves both direct and indirect management time by transferring the responsibility of certain tasks to the third-party provider. The provider is responsible for managing the work and delivering results according to specified standards, thus reducing the workload on internal management. The other options are incorrect. Choosing to outsource can increase budgetary stability by allowing for more predictable costs, it does not invariably lead to diseconomies of scale, it does not guarantee quality, and while there may be implementation risks, outsourcing can also reduce implementation risks by relying on the vendor's expertise.

Which of the Following Statements Is True About Outsourcing