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.

Question

Quizplus · Accepted Answer

Outsourcing is often chosen to reduce costs, improve focus, and access capabilities, but it is not inherently low risk, nor does it usually result in increased hiring. It is practiced in both private and public sectors, and decisions are not solely based on easily accessible financial factors.