Outsourcing involves transferring traditional internal activities to outside vendors, which allows the outsourcing firm to focus on its key success factors. This also utilizes the efficiency that comes with specialization, as outsourcing vendors may have more expertise and resources in specific areas. Therefore, all of the above statements are true of outsourcing.

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Outsourcing

Question 29

Multiple Choice

Outsourcing:

A) transfers traditional internal activities to outside vendors.
B) utilizes the efficiency that comes with specialization.
C) allows the outsourcing firm to focus on its key success factors.
D) All of the above are true of outsourcing.
E) None of the above is true of outsourcing.

Correct Answer: