Question

How is outsourcing being utilized in modern companies to improve their cost-effectiveness?

a) By increasing in-house operations
b) By reducing reliance on technology
c) By subcontracting non-core functions
d) By decreasing international collaborations

Answer 1

Outsourcing is utilized in modern companies by subcontracting non-core functions to outside contractors, which improves cost-effectiveness.

Step-by-step explanation:

In modern companies, outsourcing is utilized to improve cost-effectiveness by subcontracting non-core functions to outside contractors. This allows companies to focus on their core activities while reducing costs associated with non-essential functions like customer service or back-office operations. For example, companies may outsource their call center operations to countries where labor is cheaper, such as India or the Philippines.