The two big drivers of outsourcing are A) increased ability to cut R&D expenses
ID: 437004 • Letter: T
Question
The two big drivers of outsourcing areA) increased ability to cut R&D expenses and increased ability to avoid the problems of strategic alliances.
B) that outsiders can often perform certain activities better or cheaper and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise (its core competencies).
C) a desire to increase the company’s investment in fixed assets and the need to broaden the scope of the company’s in-house competencies and competitive capabilities.
D) that it permits the company to avoid the risk of technology change and/or changing buyer preferences.
E) that a smaller in-house work force and a low investment in intellectual capital produce cost savings.
Explanation / Answer
The two big drivers of outsourcing are
A) increased ability to cut R&D expenses and increased ability to avoid the problems of strategic alliances.
B) that outsiders can often perform certain activities better or cheaper and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise (its core competencies).
C) a desire to increase the company’s investment in fixed assets and the need to broaden the scope of the company’s in-house competencies and competitive capabilities.
D) that it permits the company to avoid the risk of technology change and/or changing buyer preferences.
E) that a smaller in-house work force and a low investment in intellectual capital produce cost savings.
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