Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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 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.

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.