A major reason outsourcing is effective is that:
A) it increases the innovative potential of the firm.
B) few firms possess superior capability in all primary and support activities.
C) it permits unlimited access to capital resources.
D) competitors do not have access to the same external sources.

Question

Quizplus · Accepted Answer

Outsourcing allows firms to focus on their core competencies and leave other activities to those who specialize in them, resulting in increased efficiency and effectiveness. It is rare for a firm to have capabilities in all primary and support activities, making outsourcing a necessary strategy for most companies. The other options listed are not accurate reasons for the effectiveness of outsourcing.

A Major Reason Outsourcing Is Effective Is That