Management Notes

Reference Notes for Management

Advantages of outsourcing do not include | Operations Management Quiz

Advantages of outsourcing do not include 

A. cost savings.
B. gaining outside expertise.
C. maintaining a focus on core competencies.
D. accessing outside technology.
E. potential creation of future competition.

[bg_collapse_level2 view=”button-orange” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ]

The Correct Answer for the given question is option E. potential creation of future competition.


Advantages of outsourcing do not include 


Answer Explanation for Question: Advantages of outsourcing do not include 


Outsourcing refers to the practice of contracting out business functions to third parties. Outsourcing can offer many benefits, including cost savings and efficiency gains, as well as greater competitive advantage. Outsourcing can also be a risk for your business, since you lose control over the outsourced function. You should carefully weigh the pros and cons of outsourcing before outsourcing any activities or business operations.

Benefits of Outsourcing

Outsourcing a task, job or a process may be advantageous for a business for many reasons. Some of these benefits include:

i. Better focus on core business activities : Outsourcing can allow your business to concentrate on its strengths, freeing up your staff to concentrate on their main tasks and future strategy.
ii. Increased efficiency : Outsourcing a process or service to a company that specializes in it can help you achieve a more productive, efficient, and often better-quality service.
iii. Managed costs : Cost-savings achieved by outsourcing can be used for other investments in your business.
iv. Increased reach : Outsourcing can give you access to capabilities and facilities that are otherwise inaccessible or unaffordable.
v. Enhanced competitive advantage : Outsourcing can help you take advantage of knowledge and skills, along with your entire supply chain.

As well as making your business more flexible and agile, outsourcing can help you to reduce costs while improving service levels and enabling you to adapt to changing market conditions.


I hope after going through this post you might have clearly understood the Question: Advantages of outsourcing do not include

Which of the following influences layout design?  | Operations Management Quiz


Leave a Comment