Outsourcing

Multiple Choice

Outsourcing:

A) is often chosen as a way for the organization to reduce or control operating costs, improve company focus, and gain access to world-class capabilities.
B) is a low risk venture because the firm can always revert back to performing the function in-house at low cost.
C) occurs primarily in large manufacturing firms in the private sector, but is rarely practiced in public purchasing.
D) usually results in increased hiring to attain expertise that the organization does not already possess.
E) decisions are based on financial factors that most organizations can easily access through their accounting system.