CIPS L5M7 Exam - Topic 1 Question 11 Discussion

Actual exam question for CIPS's L5M7 exam

Question #: 11
Topic #: 1

[All L5M7 Questions]

What is the primary motivation for offshoring?

ACheaper holidays

BExploit other countries' resources

CCut costs

DImprove cultural competence

Show Suggested Answer

Suggested Answer: C

Offshoring typically seeks cost reduction (e.g., labour arbitrage) while maintaining service/output levels; other motives are secondary. Short cited term: ''cost reduction/advantages'' (L5M7 Study Guide, domain 1.4 discussion).

by Refugia at Apr 01, 2026, 07:45 PM

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Shenika

4 days ago

I feel like improving cultural competence could be a reason too, but it doesn't seem as primary as cutting costs.

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Sherill

9 days ago

I remember a practice question that mentioned exploiting resources, but it seems more about cost savings in this context.

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Elly

14 days ago

I think the main reason for offshoring is to cut costs, but I'm not entirely sure if that's the only factor.

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