Question

All but one of the following is a reason for outsourcing services. Select one: a. Avoids coordination expenses and delays b. Allows the firm to focus on its core competence. c. Provides access to latest technology. d. Leverages benefits from supplier economies of scale.

Answer 1

Answer:

A) Avoids coordination expenses and delays

Explanation:

The main reason why a company decides to outsource services is to benefit from lower costs, which allows them to focus on the main business activities. The only problem with outsourcing is that they need to spend time and money coordinating the services provided.

E.g. a company that outsources cleaning and security services might save money by doing so, but it also must assign someone that supervises and coordinates the work.

Answer 2

Answer:

Avoids coordination expenses and delays.

Explanation:

Outsourcing can be defined as a type of business practice in which an organization assigns some of its activities to a third party. It can also be described as the practice in which a company hires another company to carry out various operations and tasks.

The importance of outsourcing include:

- It gives the organization access to more skilled individuals.

- it lowers the cost of production.

- it provides more flexibility to the employees.

- it enables the company to concentrate on more vital operations.