Which of the following statements is true regarding outsourcing?
A)There is no guarantee that outsourcing will provide a certain level of quality.
B)Outsourcing leads to greater budgetary instability.
C)Outsourcing saves direct management time but increases indirect management time.
D)Outsourcing involves significant implementation risk.

Question

Quizplus · Accepted Answer

While outsourcing can potentially lead to cost savings, it does not necessarily guarantee a certain level of quality. Quality control measures need to be put in place to ensure that the outsourced work meets the required standards.

B) is not entirely true as outsourcing can provide a more stable budget if the costs are negotiated upfront and are predictable.
C) is also not entirely true as outsourcing can save both direct and indirect management time if the outsourced work is managed properly.
D) While there is some risk involved with outsourcing, significant implementation risk is not necessarily always the case.

Which of the Following Statements Is True Regarding Outsourcing