Strategic outsourcing is best described as a
A)means of getting rid of excess activities.
B)way of getting other companies to do what the outsourcing company no longer wants to do.
C)method of streamlining the marketing activities of a company.
D)decision to allow one or more of a company's value chain activities to be performed by other companies.
E)none of these choices.

Question

Quizplus · Accepted Answer

Strategic outsourcing refers to the decision of a company to outsource one or more of its value chain activities to other companies, with the aim of achieving greater efficiency, cost savings, and improved performance. It is not about getting rid of excess activities, but rather about strategically selecting which activities to outsource to achieve the best results. It is also not solely about getting other companies to do what the outsourcing company no longer wants to do, but rather about optimizing the overall process and performance of the company's value chain. Strategic outsourcing is not related to streamlining marketing activities, which is a different concept altogether.

Strategic Outsourcing Is Best Described as a