Why Is Outsourcing Often Chosen as an Alternative to Making

question 117

Multiple Choice

Why is outsourcing often chosen as an alternative to making goods in-house or providing in-house services?

• A) outsourcing solves customer pressure for firms to diversify production
• B) outsourcing guarantees that the highest-quality product will be produced
• C) outsourcing solves security problems when proprietary technology is involved
• D) outsourcing allows firms to concentrate their resources on their core businesses

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Definitions:

External Consultants

Experts hired from outside an organization to provide specialized knowledge, skills, or advice in specific areas.

Incentive Pay Systems

Compensation strategies used by organizations to motivate and reward employees beyond their regular salaries based on performance criteria.

Customer Focus

A strategic approach by businesses that prioritize the interests, needs, and satisfaction of customers in their planning, product development, and service delivery.

Employee Surveys

Tools used by organizations to gain feedback from employees regarding their feelings and perceptions about the work environment, culture, and processes.