Question

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 these are true of outsourcing.

E. None of these is true of outsourcing.

Answer 1

Answer: Option D  

           

Explanation: Outsourcing is an arrangement where one organization employs another organization to be responsible for an in-house planned or ongoing operation and sometimes requires the transition of staff and properties from one organization to another.

There are number of reasons why company outsource their activities some of which could be lesser cost, focus on core activities and use of specialization etc.

Outsourcing is generally performed by organisations that are operating their business at a very high scale and the management is unable to monitor and perform all jobs efficiently.