Final answer:
The assertion that transformational outsourcing can lead to efficiency, productivity, quality, and revenue improvements while also providing the means to revitalize businesses is true. Outsourcing allows firms to utilize offshore talent to achieve significant transformation and operational restructuring, despite causing job shifts and economic changes in their home country.
Step-by-step explanation:
The statement in question is true. Transformational outsourcing refers to the strategic use of outside resources to perform activities traditionally handled by internal staff and resources. It is a management practice that aims to achieve significant improvements in efficiency, productivity, quality, and revenues. Through outsourcing, firms can leverage offshore talent which can provide a means to transform their business operations. This may involve turning around failing businesses, accelerating innovation, restructuring operations, and funding new development projects that may have been prohibitively expensive otherwise.
Some historical context includes the shifts in the global economy that have led to an increase in outsourcing and offshoring. For instance, trade agreements like NAFTA facilitated companies in developed nations to move operations to places where labor costs are lower. This can result in job shifts and structural changes in the economy of the home country but can help corporations remain competitive in a global market. Outsourcing and offshoring are tools that can lead to the creation of polarization of work and structural unemployment, but they can also contribute to a firm's growth and operational efficiency.