Why Companies Outsource?

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12 Questions

Match the outsourcing reason with its description:

Capacity Management = Need to acquire temporary capacity based on fluctuating demand Lower Cost = Replacing expensive local resources with cheaper external resources Better Performance = Using specialized providers for higher quality and innovation Fast and Continuous Service Delivery = Achieving greater output by working around the clock

Match the outsourcing activity with its type:

Automobile components = Part-based activity Cruise-ship rooms = Part-based activity Airplane avionics = Part-based activity Desktop build and configuration = Part-based activity

Match the outsourcing example with the correct provider:

Sales force providing web-based sales management = Better Performance PeopleSoft providing employee-facing tools = Better Performance Offshoring market research support to reverse time zones = Fast and Continuous Service Delivery Offshoring processing of bills of lading to other time-zones for faster task completion = Fast and Continuous Service Delivery

Match the outsourcing reason with its benefit:

Capacity Management = Acquiring temporary capacity based on fluctuating demand Lower Cost = Replacing expensive local resources with cheaper external resources Better Performance = Using specialized providers for higher quality and innovation Fast and Continuous Service Delivery = Achieving greater output by working around the clock

Match the outsourcing reason with its specific situation:

Capacity Management = Need to hire more employees one day and fewer the next day due to demand fluctuations Lower Cost = Taking advantage of tax differentials or government incentives in other locations for cost savings Better Performance = Utilizing external providers for better quality and innovation in service delivery Fast and Continuous Service Delivery = Completing tasks faster by offshoring work to different time zones

Match the outsourcing reason with its impact:

Capacity Management = Managing temporary capacity based on varying demand requirements Lower Cost = Reducing expenses by using external resources instead of expensive local ones Better Performance = Achieving higher service quality and innovation through specialized providers Fast and Continuous Service Delivery = Improving speed and efficiency of service delivery through continuous operations

What is one of the main reasons why companies outsource according to the text?

To increase in-house capacity

How does outsourcing help in lowering costs, as per the text?

By replacing expensive local resources with cheaper external service providers

What is a benefit of outsourcing related to better performance, as mentioned in the text?

Employing specialized external providers for better quality and innovation

How does outsourcing contribute to faster and continuous service delivery according to the text?

Allowing work to be done around the clock by distributing tasks globally

Which of the following is an example of part-based activities suitable for outsourcing, based on the text?

Airplane avionics

How does outsourcing help companies in managing capacity, as stated in the text?

By acquiring temporary capacity to handle fluctuations in demand

Learn about the reasons companies outsource their activities, such as capacity management, lower costs, better performance, and faster service delivery.

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