Business Studies · Management Strategy

Which of the following statements about outsourcing is true?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1None
2Outsourcing carries commercial and reputational risks.✓
3Outsourcing to external contractors harnesses specialist expertise, but at the cost of lost economies of scale.
4In order to maintain control, the organisation should outsource activities in areas of its own core competence.

Correct answer

Outsourcing carries commercial and reputational risks.

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