SQA Higher Business Management Practice Exam

Question: 1 / 400

What is one advantage of outsourcing in a business context?

Lower quality of work produced

Increased control over outsourced activities

Ability to focus on core competencies

Outsourcing allows a business to concentrate on its core competencies, which are the unique strengths and abilities that differentiate it from competitors. By delegating non-core functions or tasks to external firms, a business can allocate more resources—such as time, effort, and budget—towards the areas where it excels and creates the most value. This can lead to improved efficiency, higher productivity, and potentially greater profitability, as employees can focus on the tasks that align with the business's strategic goals.

When organizations outsource functions such as IT support, customer service, or manufacturing processes, they free up internal capabilities and can innovate or enhance services/products related to their core business. This strategic focus not only improves operational performance but can also foster competitive advantage in the marketplace.

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Higher costs associated with idle staff

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