Question

A major reason outsourcing is effective is that: a. competitors do not have access to the same external sources. b. it increases the innovative potential of the firm. c. it permits unlimited access to capital resources. d. few firms possess superior capability in all primary and support activities.

Answer 1

Answer:

The correct answer is d. few firms possess superior capability in all primary and support activities.

Explanation:

Outsourcing  shifts tasks, operations, jobs, or processes to an external workforce, by contracting with a third party for a significant period of time. A major reason outsourcing is effective is that some firms might not be capable to perform all secondary and primary activities. A company may implement a new process and outsource the work to trained workers, instead of investing the time, money and effort to train and maintain internal workers.