Question

Outsourcing is: a low risk venture because global suppliers have almost unlimited capabilities. a high risk venture because the costs of reversing the decision are often high. a moderate risk venture because it is easy to determine core competencies. a low risk venture because the costs of reversing the decision are low. a high risk venture because the decision makers’ reputations are at stake.

Answer 1

Answer:

a high risk venture because the costs of reversing the decisions are often high

Explanation:

Outsourcing refers to a business function whereby a firm decides to assign the performance of it's less important routine tasks to another firm who specializes in performance of those tasks.

By Outsourcing, a firm is able to devote more time to those processes which are integral and important and also gains by the specialization of the firm in performance of those routine tasks.

Such an activity is a high risk venture in the sense once a firm decides to outsource it's internal task, the talent and creativity of the employees who were supposed to perform that task initially is given up in exchange for availing specialized services.

So if a firm decides to reverse i.e give up outsourcing and assign those tasks to it's own workforce, the costs would now be higher.