Which of the following is TRUE about outsourcing?
A) Outsourcing allows firms to be more flexible and requires minimal coordination.
B) Outsourcing allows firms to concentrate on those areas in which they can create value.
C) Outsourcing strengthens the creative and innovative functions within the firm.
D) Outsourcing is effective only when it includes all support activities.

Question

Quizplus · Accepted Answer

Outsourcing allows firms to focus on what they do best, while delegating non-core tasks to specialized firms that can perform them more efficiently and effectively. This helps firms to create more value and grow their business without getting bogged down in tasks that are outside of their core competencies. While outsourcing requires some coordination, it can still provide greater flexibility for firms as they can choose which activities to outsource and which to keep in-house. Outsourcing can also help to spur creativity and innovation within the firm, as it forces managers to think more strategically about how to allocate resources and maximize value. However, outsourcing does not necessarily require all support activities to be outsourced in order to be effective.

Which of the Following Is TRUE About Outsourcing