Outsourcing:

Question 20 options:

	may reduce operating costs, improve focus on core competencies, and gain access to world-class capabilities.
	occurs primarily in large manufacturing firms in the private sector, but is rarely practiced in public purchasing.
	is a low risk initiative because the firm can always revert back to performing the function in-house.
	usually results in increased hiring to attain expertise that the organization does not already possess.
	decisions are based on cost-benefit analysis.