Outsourcing strategies

Question

Quizplus · Accepted Answer

Outsourcing strategies involve farming out value chain activities presently performed in-house to outside specialists and strategic allies. Option A is incorrect as the attractiveness of a strategy depends on the company's specific circumstances. Option B is partially correct as outsourcing can increase costs if not managed properly, but it could also lead to cost savings if done right. Option C is partially correct too, as outsourcing can make a company dependent on its suppliers, but it could bring benefits such as access to specialized knowledge, resources, and economies of scale. Option D is incorrect as outsourcing can also help a company to adapt more quickly to changing technology and buyer preferences if it has the right partners.

Outsourcing Strategies