Question $12$

$1\mathrm{.}5pts$

What might be considered a major drawback of employing an outsourcing strategy?

It can hollow out a firm's own capabilities and cause it to lose touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success.

It involves an activity that can be performed better or more cheaply by outside specialists.

It improves organizational flexibility and speeds time to market.

It reduces the company's risk exposure to changing technology and$/$or buyer preferences.

It allows a company to concentrate on its core business, leverage its key resources and core competencies, and do even better what it already does best.