The greater the level of vertical integration, the higher is the level of outsourcing.

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The greater the level of vertical integration, the lower is the level of outsourcing. When a company vertically integrates, it brings activities in-house that were previously outsourced to other firms. Conversely, outsourcing refers to the practice of hiring external companies to perform business functions that were previously done in-house. Therefore, as a company increases its level of integration, it should decrease its reliance on outsourcing.

The Greater the Level of Vertical Integration, the Higher Is