BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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it helps businesses to focus their attention on the core business activities
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it reduces costs
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it stimulates exports and boosts economic development
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all of the above
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Detailed explanation-1: -Outsourcing non-core activities can improve efficiency and productivity because another entity performs these smaller tasks better than the firm itself. This strategy may also lead to faster turnaround times, increased competitiveness within an industry, and the cutting of overall operational costs.
Detailed explanation-2: -Focus on Core Function Outsourcing helps businesses by moving some activities to external people so that they can concentrate on the main functions. Here third parties play a key role by acquiring the tasks. Outsourcing is extremely helpful when businesses have a heavy workload.
Detailed explanation-3: -Focusing of Attention: Outsourcing allows businesses to concentrate on the core (significant) areas and outsource routine tasks. It enables them to focus their attention and resources on the selected areas for better efficiency and effectiveness.
Detailed explanation-4: -Reasons for outsourcing Companies often outsource as a way to lower costs, improve efficiencies and gain speed. Companies that decide to outsource rely on the third-party providers’ expertise in performing the outsourced tasks to gain such benefits.