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Which of the following risks is associated with outsourcing?
Suggested Answer: C
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According to the APICS CSCP - Supply Chain Management Certification, outsourcing is the process of transferring some or all of the activities or functions of a firm to an external provider or supplier. Outsourcing can have many benefits, such as reducing capital investment, achieving economies of scale, increasing flexibility, and accessing specialized skills or technologies. However, outsourcing also involves some risks, such as conflicting objectives between the buyer and the supplier, loss of control over quality or delivery, loss of core competencies or competitive advantage, increased dependency or vulnerability, or ethical or social issues.
17 comments · newest first
EL
Eleonora
11 months ago
Really? I thought economies of scale were always a good thing.
EL
Elinore
11 months ago
Reduction of capital investment is a common reason to outsource.
LA
Lazaro
11 months ago
Wait, isn't increased flexibility a benefit, not a risk?
GE
Georgeanna
11 months ago
I totally agree, especially with different priorities.
CE
Cecily
12 months ago
Conflicting objectives can definitely be a risk.
RO
Roxane
12 months ago
Increased flexibility seems like a positive outcome of outsourcing, so I doubt that's a risk.
LI
Lina
12 months ago
I feel like we had a practice question about outsourcing risks, and conflicting objectives was mentioned as a potential issue.
KI
Kiley
1 year ago
I’m not sure, but I think reduction of capital investment is more of a benefit than a risk.
MY
Myra
1 year ago
I remember discussing how outsourcing can lead to conflicting objectives between the company and the vendor. That might be the right answer.
VE
Veronica
1 year ago
I've got a good feeling about this one. Outsourcing can definitely lead to conflicting objectives between the company and the outsourced provider, so I'm going to go with C.
TI
Timothy
1 year ago
Okay, let's see. Outsourcing can introduce risks like loss of control, security concerns, and potential quality issues. I'll need to carefully consider each option.
AN
Antonio
1 year ago
Hmm, I'm a bit unsure about this one. I'll need to think through the potential risks of outsourcing to determine the best answer.
LO
Lorean
1 year ago
This one seems pretty straightforward. I think the key is to focus on the risks associated with outsourcing, not the benefits.
WA
Walker
1 year ago
I'm pretty confident the answer is A. The question specifies the locale code is de, so the new file should be named checkout_de.properties and placed in the resources folder.
GA
Galen
1 year ago
Hmm, I'm not totally sure about this one. I'm trying to weigh the pros and cons of each option. Controlled vocabulary and corporate taxonomy seem a bit too centralized, but I'm not confident the folksonomy is the best fit. I'll have to think it through carefully.
BE
Bethanie
1 year ago
Hmm, I'm a bit unsure about the ASCII and Unicode part. I know ASCII is a character encoding system, but I can't remember if it's a subset of Unicode or not. I'll have to think that one through.
LI
Lizette
1 year ago
I remember something about configuring the send and accept lifetime with key 1. That might be the right move if the keys aren't matching.