Which of the following can be cited as an example of outsourcing? A. P&G acquires a retail outlet to reduce its distribution costs. B. Dell sources computer parts from suppliers located in Russia. C. Volkswagen acquires a steel manufacturing plant to reduce its overall production costs. D. Microsoft hands over its customer service function to Convergys, located in India. E. Audi starts a manufacturing facility in China to take advantage of low labor costs.

Question

Dominique Kelly

Business

27 October, 05:12

Which of the following can be cited as an example of outsourcing? A. P&G acquires a retail outlet to reduce its distribution costs. B. Dell sources computer parts from suppliers located in Russia. C. Volkswagen acquires a steel manufacturing plant to reduce its overall production costs. D. Microsoft hands over its customer service function to Convergys, located in India. E. Audi starts a manufacturing facility in China to take advantage of low labor costs.

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Antony Casey · Answer 1

The answer is: D) Microsoft hands over its customer service function to Convergys, located in India.

Explanation:

Outsourcing happens when a company hires another company (or individual) to perform tasks or operations that previously used to be performed by the company's own staff.

Usually companies due this to save money, services provided in India cost probably a fraction of the same service provided in Washington. More common examples are cleaning companies.