The Pros and Cons of Outsourcing
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Questions and Answers

Which of the following is NOT a benefit of outsourcing?

  • Increased flexibility (correct)
  • Focus on core business
  • Cost savings
  • Access to expertise

    • Which of the following is a potential risk of outsourcing?

  • Focus on core business
  • Access to expertise
  • Quality control (correct)
  • Cost savings

    • Which of the following is an example of outsourcing?

  • Hiring a full-time IT team
  • Scaling operations based on business needs
  • Outsourcing accounting and tax functions (correct)
  • Focusing on software development

    • Which of the following is a potential risk associated with outsourcing?

    <p>Dependency on suppliers</p> Signup and view all the answers

    What is one of the hidden costs that can come with outsourcing?

    <p>Legal fees</p> Signup and view all the answers

    Which industry might outsource customer support during the holiday season?

    <p>Retail</p> Signup and view all the answers

    What can be a potential consequence of outsourcing customer service to a third-party provider?

    <p>Loss of control over service level</p> Signup and view all the answers

    Which of the following is NOT a benefit of outsourcing?

    <p>Increased operational flexibility</p> Signup and view all the answers

    Which of the following examples demonstrates the cost-saving benefit of outsourcing?

    <p>A small business outsourcing its IT support to a specialized agency</p> Signup and view all the answers

    Which of the following is a potential risk associated with outsourcing?

    <p>Loss of control over quality and processes</p> Signup and view all the answers

    Which of the following is a potential risk of outsourcing a critical function?

    <p>Hidden costs</p> Signup and view all the answers

    What is a potential consequence of outsourcing customer service to a third-party provider that doesn't meet expected service levels?

    <p>Loss of control</p> Signup and view all the answers

    What is a potential risk of outsourcing IT functions that involve cross-border data transfers?

    <p>Additional costs related to data security and compliance</p> Signup and view all the answers

    What can be a potential risk to data security and privacy when outsourcing sensitive data processing and storage?

    <p>Potential exposure of sensitive data</p> Signup and view all the answers

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