Question

Outsourcing critics contend that shifting responsibility for performing value-chain activities to outside specialists :

Answer 1

Answer: B.can hollow out a company's knowledge base and capabilities, leaving it at the mercy of outsider suppliers, and short of the resource strengths to be a master of its own destiny.

Explanation: Outsourcing is simply defined as the transfer of a business function to an external service provider. While it can be extremely profitable to a company as it helps to heighten its strategic focus and thus allocate its full energies and resources on competently performing activities that are at the core of its strategy and for which it can create unique value, outsourcing critics however believe that shifting responsibility for performing value-chain activities to outside specialists can hollow out a company's knowledge base and capabilities. This they propose leaves the company at the mercy of outsider suppliers, and with inadequate resource to be able to achieve its missions and goals.