The Two Big Drivers of Outsourcing Are

Multiple Choice

The two big drivers of outsourcing are

A) increased ability to cut R&D expenses and increased ability to avoid the problems of strategic alliances.
B) that outsiders can often perform certain activities better or cheaper and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise (its core competencies) .
C) a desire to reduce the company's investment in fixed assets and the need to narrow the scope of the company's in-house competencies and competitive capabilities.
D) the ability to avoid capital investments that accompany vertical integration and a desire to reduce the company's risk exposure to changing technology and/or changing buyer preferences.
E) that a smaller in-house work force and a low investment in intellectual capital produce cost savings.