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 choiceshelps focus on an organization’s core businessFalseprotects strategic information from being accessible to external suppliersreduces fixed and recurrent costsincreases accountability even without a written contract

What is Outsourcing?By giving an outside party the responsibility to make goods for your company By producing the goods within your company

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

Outsourcing is a strategy that involvesMultiple choice question.conducting value chain operations in-house rather than relying on outside vendors.merging with or acquiring a company that specializes in an operation further up the value chain.contracting out certain value chain activities that are normally performed in-house to outside vendors.moving value chain activities from one division in the company to another.

What is a disadvantage for a company that outsources jobs?Multiple ChoiceThe need to purchase and update computers and related equipment increases substantially.There is less potential to groom and hire from within an enculturated workforce.The work force size within the company increases, thereby increasing its salary budget.The company's contribution to employee health benefits, retirement, and 401(k) payments increases.