Everything else being equal, a firm considering outsourcing can be reasonably certain that:
A) total costs will be lower.
B) its supplier probably has more expertise in whatever is being outsourced.
C) it can maintain tight control over knowledge.
D) proprietary information will not be disclosed.
E) control over operations will be maintained.

Question

Quizplus · Accepted Answer

Outsourcing typically involves partnering with a specialized supplier who has expertise in the area being outsourced. Therefore, the firm can reasonably expect that its supplier will have more expertise in the outsourced function than it does. However, total costs, control over knowledge, proprietary information disclosure, and control over operations are not certain outcomes of outsourcing.

Everything Else Being Equal, a Firm Considering Outsourcing Can Be