Why do organizations outsource their business functions?
A) To keep up with market and technology advances
B) To enhance the domain knowledge of an organization
C) To create business relationships with other countries
D) To maintain market perceptions regarding the sophistication of its technology

Question

Quizplus · Accepted Answer

Organizations outsource their business functions to keep up with market and technology advances. Outsourcing allows companies to tap into specialized expertise that is not available internally, to gain competitive advantages, reduce costs, improve quality, and increase flexibility. It helps companies focus on their core competencies and free up resources for strategic initiatives.

B, C, and D may also be factors in outsourcing decisions, but they are not the primary reason why organizations outsource their business functions. Enhancing domain knowledge, creating business relationships with other countries, and maintaining market perceptions regarding sophistication of technology are not as critical as keeping up with market and technology advances in today's dynamic business environment.

Why Do Organizations Outsource Their Business Functions