When Considering Outsourcing, What Should Firms Be Sure to Avoid

Multiple Choice

When considering outsourcing, what should firms be sure to avoid?

A) Losing control of non-core activities which don't distinguish the firm
B) Allowing outsourcing to develop into a substitute for innovation
C) Giving the outsourcing partner opportunities to become a strong competitor
D) Allowing employees transferred to the outsourcing partner to rejoin the firm
E) Adverse corporate tax implications of asset transfers to the outsourcing partner