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Which of the following is an advantage of outsourcing?

A) It enables a company to focus on core competencies.
B) It decreases dependence on other organizations.
C) It decreases the risk of disclosing confidential information.
D) It improves managerial control.
E) It enhances in-house technical expertise.

1 Answer

6 votes

Final answer:

One advantage of outsourcing is that it allows a company to focus on core competencies, while also decreasing dependence on other organizations. The correct option is

A) It enables a company to focus on core competencies.

B) It decreases dependence on other organizations.

Step-by-step explanation:

One advantage of outsourcing is that it enables a company to focus on core competencies. By outsourcing non-core tasks, a company can allocate more resources and attention to its primary business activities, allowing it to become more specialized and efficient in those areas.

Outsourcing also decreases dependence on other organizations (option B). When a company outsources certain functions, it no longer has to rely on external partners or suppliers to provide those services. This can help reduce the risk of disruptions in the supply chain and increase the company's flexibility.

However, the other options listed (C, D, and E) are not advantages of outsourcing. Outsourcing does not necessarily decrease the risk of disclosing confidential information (option C), as there is always a risk when sharing sensitive data with external parties. It does not improve managerial control (option D), as the company is relinquishing direct control over the outsourced tasks. It does not enhance in-house technical expertise (option E), as outsourcing involves relying on external expertise rather than developing it internally.

The correct option is

A) It enables a company to focus on core competencies.

B) It decreases dependence on other organizations.

User Mike Szyndel
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