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Explain the Reasons Why a Firm Might Choose to Outsource

question 77

Essay

Explain the reasons why a firm might choose to outsource its information systems services.


Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to a normal good.

Normal Good

A type of good for which demand increases as the income of individuals increases, indicating a direct relationship between income and demand.

Demand-Increasing Factor

Elements or conditions that lead to an increase in demand for a product or service, such as a rise in consumer income or a change in tastes.

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