Which of the following are advantages of outsourcing? Check all that apply.

1.Reduces vulnerability of firms' strategic information

2.Creates opportunity for new exports

3.Reduces costs for the company that is outsourcing

Respuesta :

The advantage of outsourcing is that it 3.Reduces costs for the company that is outsourcing.

  • Outsourcing is a business practice which enables an entity to hire an outside party so that the outside party can perform services that were formerly performed by the entity's employees.

  • As it has been established, the main goal of outsourcing is to cut costs.  Another advantage is that outsourcing enables the entity to hire expensive expertise for a limited time, which still results to cost-cutting.

  • Outsourcing increases the firm's vulnerability.  It does not create opportunities for new exports.

Thus, the main advantage of outsourcing is to reduce costs.

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Outsourcing reduces vulnerability of firms' strategic information and reduces costs for the company

Outsourcing is a process whereby a company passes the responsibility of an activity or process to an another company who is specialized in the project or activities.

Reason why companies outsource are:

  • The process reduces the Cost which would have been spent
  • Its help the company focus on core functions.
  • Its improves service and efficiency
  • It is the way to gain access to external expert talent and knowledge.

In conclusion, the process helps to reduce the cost of operation and time which would expend if such activity if done internally.

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