BUSINESS DRIVEN TECHNOLOGY(LL)-W/ACCESS
BUSINESS DRIVEN TECHNOLOGY(LL)-W/ACCESS
7th Edition
ISBN: 9781260149043
Author: BALTZAN
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 19, Problem 6AYK

Explanation of Solution

Advantages of outsourcing:

  • Increased quality and efficiency:
    • The quality and efficiency of product could be improved through outsourcing.
    • Travel store could receive optimality in sales trends.
  • Reduced operating expenses:
    • There is no resource and operating expenses while outsourcing a project.
    • The operating overhead for Travel store could be eliminated.
  • Allow business to focus on core competencies:
    • The outsourcing of non-core processes would allow business to focus on core competencies.
    • Travel store can focus on core competencies while outsourcing inventory management.
  • Risk exposure is reduced:
    • The risk of performing task and maintenance is been reduced.
    • The business could achieve quality results without having risk factor.
    • The risk features for Travel store will be reduced while eliminating inventory management trends.
  • Access to outsourcing economies of scale as well as it provides expertise for the service provider...

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