Question 1
Which of the following statements is most accurate?
◦ Nearly all outsourcing relationships do not last beyond two years.
◦ Outsourcing is a relatively risk-free activity.
◦ Nearly all U.S. firms that outsourced processes to India have backsourced them.
◦ Approximately half of all outsourcing agreements fail.
◦ More than 90% of outsourcing agreements succeed.
Question 2
According to research, which of the following is the most common reason cited for outsourcing failure?
◦ decisions made without sufficient understanding of the options through analysis
◦ core competencies identified as non-core
◦ unable to control product development, schedules, and quality
◦ erratic power grids in foreign countries
◦ political and exchange rate uncertainty
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