Answer: Both (a) and (b)
Step-by-step explanation:
Developments in IT—especially the advent of the internet
The latter 20th century saw many technological changes as the world evolved in IT. Markets that were not previously accessible became more accessible and many new products were created and flourished. The internet brought markets and people together and there was an immense opportunity for growth and success. This forced companies to adapt to the new environment because failure to take advantage on the new opportunities that IT offered could spell doom. Companies responded by downsizing to take advantage of better production technologies that required less people, they refocused their strategies to enable higher productivity and with IT making the world so interconnected, they were able to outsource production to cheaper places knowing that they could maintain regular contact with such place. These are but a few reasons why.
A more turbulent business environment.
The latter 20th century also saw a wave of turbulence in the business world. With a rise in nationalistic feelings and conflict that made acquiring raw materials harder such as the oil crises of the '70s and the 80s. This as well as the presence of more companies which led to increased competition forced some companies to engage in actions necessary for survival. They had to downsize, refocus and sometimes outsource to remain profitable.