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 (C)</p> Signup and view all the answers

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

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

Which industry might outsource customer support during the holiday season?

<p>Retail (D)</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 (B)</p> Signup and view all the answers

Which of the following is NOT a benefit of outsourcing?

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

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

<p>Hidden costs (A)</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 (C)</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 (C)</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 (B)</p> Signup and view all the answers

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