A drawback of outsourcing is that:
A)it does not provide access to specific skills or technologies.
B)it invariably results in an increase in both fixed and recurrent costs.
C)it can make an organization become overly dependent on particular suppliers.
D)it cannot increase accountability of suppliers through a written contract.

Question

A drawback of outsourcing is that:
A)it does not provide access to specific skills or technologies. 
B)it invariably results in an increase in both fixed and recurrent costs. 
C)it can make an organization become overly dependent on particular suppliers. 
D)it cannot increase accountability of suppliers through a written contract.

Quizplus · Accepted Answer

An organization can become too dependent on particular suppliers. If those suppliers went out of business or lost key personnel, it could cause great damage to a project.

A Drawback of Outsourcing Is That