Which of the following is not typically a reason for outsourcing?Multiple ChoiceInsufficient capacity to produce internallyLess time needed to coordinate supply-related activitiesTo focus on core activities and outsource othersSuppliers have more knowledge and expertise

A financially driven reason for outsourcing is that it can reduce costs through a lower cost structure.Question 38Answera.TRUEb.FALSE

Most organizations are not in business to provide information technology services, yet many have spent valuable time and resources on information technology functions when they should have instead worked on important competencies such as marketing, customer service, and new product design. Outsourcing helps tackle this problem. Which benefit does outsourcing primarily provide in such a scenario?Group of answer choicesFalseprotects strategic information from being accessible to external suppliersincreases accountability even without a written contracthelps focus on an organization’s core businessreduces fixed and recurrent costs

When is a firm more likely to outsource a particular activity that it otherwise would conduct itself?Group of answer choicesThe particular activity is the most important aspect of the final product.The value generated by the conduct of the activity is minimal in comparison to the total value of the final product.There are very few external agents that can carry out that particular activity.There are many external agents that could perform the activity at the same cost.

Outline three advantages and three disadvantages of outsourcing.

Which of the following are disadvantages of outsourcing?Loss of control over business processesIssues of turnaround timePotential loss of sensitive dataAll of the above