Which of the following statements is true about outsourcing?
A)It increases budgetary instability due to the level of risk involved.
B)It saves both direct and indirect management time.
C)It invariably leads to diseconomies of scale.
D)It guarantees a higher level of quality than that provided in-house.

Question

Quizplus · Accepted Answer

Outsourcing can save both direct and indirect management time as the outsourced vendor may take over certain tasks, reducing the workload of the in-house team. Option A is incorrect as outsourcing inherently involves a level of risk, but it does not necessarily increase budgetary instability. Option C is incorrect as outsourcing can lead to economies of scale by allowing the company to focus on core activities and reduce the cost of non-core activities. Option D is incorrect as the level of quality provided by the outsourcing vendor may vary depending on the vendor's capabilities and service-level agreements.

Which of the Following Statements Is True About Outsourcing