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CIPS L5M7 Exam - Topic 1 Question 11 Discussion

What is the primary motivation for offshoring?
C) Cut costs
A) Cheaper holidays
B) Exploit other countries' resources
D) Improve cultural competence

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?

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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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Sylvie
11 hours ago
I agree, C) makes the most sense. Companies want to save money.
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Anisha
6 days ago
I think it's C) Cut costs. That's the main reason.
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Erinn
11 days ago
C is spot on! Companies just want to save money.
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Antonio
16 days ago
Wait, are we really saying offshoring is about improving cultural competence?
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Youlanda
2 months ago
I think B) Exploit other countries' resources is more accurate.
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Katie
2 months ago
Definitely C) Cut costs. That's the main reason!
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Florinda
3 months ago
I’m leaning towards option C, but I wonder if there are other motivations that might be more significant.
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Shenika
3 months 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
3 months 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
4 months ago
I think the main reason for offshoring is to cut costs, but I'm not entirely sure if that's the only factor.
upvoted 0 times
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