Final answer:
When outsourcing product development to a separate company, it is crucial to provide high-quality written requirements due to the reduced direct interactions with the development team.
Step-by-step explanation:
The statement that is CORRECT in outsourcing product development is that outsourcing product development to a separate company demands high-quality written requirements, because of the reduced direct interactions with the development team. When a company outsources, it means that tasks or services that could have been done internally are now done by an external party. This can lead to a loss of direct control and oversight. Therefore, to ensure that the outsourced product development aligns with the company’s objectives and quality standards, highly detailed and clear requirements need to be provided to the external development team.
Outsourcing has become a widespread practice due to globalization, trade agreements like NAFTA, and the search for more cost-effective labor solutions. While outsourcing can lead to cost savings and access to specialized skills, it can also result in job losses in the developed countries as companies move operations offshore to reduce costs. In any case, whether it is manufacturing, customer service, or technical jobs, providing high-quality, unambiguous requirements is essential for the success of outsourced product development projects to mitigate the risks associated with outsourced services.