Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is an advantage of outsourcing related activities?

1. Increased operational complexity

2. Clearer focus on core activities

3. Greater reliance on in-house staff

4. Decreased flexibility in sourcing

The correct answer is: Clearer focus on core activities

Outsourcing allows organizations to delegate certain activities to external providers, which enables them to concentrate on their core competencies. By outsourcing, companies can redirect their resources—both financial and human—towards their primary business objectives, improving efficiency and effectiveness in those areas. This clearer focus on core activities is crucial for enhancing overall competitiveness and innovation. In contrast to the advantages of outsourcing, increased operational complexity and decreased flexibility are often cited as potential downsides. Relying more on in-house staff typically counters the benefits of outsourcing, as it hinders the ability to leverage external expertise and efficiencies. Hence, outsourcing is strategically beneficial, particularly in allowing the organization to hone in on what it does best while leveraging external services for other functions.