The driving force behind the recent outsourcing of service activities such as IT, HR, and logistics is that many firms, which used to view certain activities as a very special part of their industries, now believe that these activities have relatively generic attributes that can be shared across industries.

Question

Alessandra Gilmore

Business

3 May, 04:36

The driving force behind the recent outsourcing of service activities such as IT, HR, and logistics is that many firms, which used to view certain activities as a very special part of their industries, now believe that these activities have relatively generic attributes that can be shared across industries.

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Answers (1)

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Virginia Ryan · Answer 1

The correct answer is: true.

Explanation:

Subcontracting is a new possibility for companies to address many aspects not related to the main business activity. It has gone from being considered only under an economic prism, to be taken into account under strategic considerations. The traditional and unique objective of subcontracting, which was the reduction of costs, is now extended, going from being the primary objective of not losing competitive position.

The outsourcing of logistics activities to a logistics service provider (LSP) can be seen from a perspective based on resources and capabilities, and on the importance of developing competencies in the relationship between the subcontracting company and the LSP. It also highlights that the company that subcontracts maintains internal logistics competencies to be able to develop new skills in the relationship.