The level of outsourcing risk is heightened as the organization increases the scope of processes being outsourced.

Question

Quizplus · Accepted Answer

This statement is true. As more processes are outsourced, the level of dependency on the outsourcing partner increases, leading to an increased risk of disruptions or failures in the outsourced processes. Additionally, as the complexity of outsourced processes increases, the risk of miscommunication, cultural differences, and legal or regulatory compliance issues also increases. Therefore, it is important for organizations to carefully assess and manage outsourcing risks.

The Level of Outsourcing Risk Is Heightened as the Organization