Many firms have taken advantage of outsourcingto over many of the risks involved in having tosource internally. The decision to outsourcehowever comes with a trade-off. Mostorganizations in the outsourcing sector outside thesupplier community say that lowering cost isalways the driver for outsourcing but others seestrategic and operational drivers as equallyimportant.a) Briefly explain four (4) operational reasons ofoutsourcing.b) Why do some organizations, regardless of thebenefits of outsourcing, would still not consider itas an option? Discuss four (4) reasons to explainyour answer.

Answered: cision ade-off Sourcin

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Related questions

Question

Many firms have taken advantage of outsourcing
to over many of the risks involved in having to
source internally. The decision to outsource
however comes with a trade-off. Most
organizations in the outsourcing sector outside the
supplier community say that lowering cost is
always the driver for outsourcing but others see
strategic and operational drivers as equally
important.
a) Briefly explain four (4) operational reasons of
outsourcing.
b) Why do some organizations, regardless of the
benefits of outsourcing, would still not consider it
as an option? Discuss four (4) reasons to explain
your answer.

Expert Solution

Step 1

Organizing is the managerial process that aims to clarify each person's contribution to achieving organizational goals, while taking into consideration the establishment of authority-responsibility relationships among all and providing for coordination within the organization as a built-in mechanism for achieving harmonious group action. The managerial process known as organizing aims to clarify each person's contribution to the achievement of organizational goals. Every organization is supported by its organizational structure. Every business' main goal is to raise its profit margin while minimizing resource waste.