The key to outsourcing is to purchase from the outside only those activities that
A) are not key to the company's distinctive competence.
B) are very expensive.
C) provide the company competitive advantage.
D) are provided by an important supplier.
E) are not very expensive.

Question

Quizplus · Accepted Answer

Outsourcing activities that are not key to the company's distinctive competence means that the company can focus on its core competencies while utilizing the expertise of outside vendors for non-core activities. This allows the company to optimize its resources and increase efficiency without compromising its competitive advantage. Option B, E, and D are not correct because the cost or involvement of the supplier is not the only consideration for outsourcing decisions. Option C is also not entirely correct as outsourcing activities providing a competitive advantage can be risky and may result in the loss of know-how and control over these activities.

The Key to Outsourcing Is to Purchase from the Outside