Question 20 of 22
Q.The main benefit of outsourcing is ............
(a) Productivity
(b) Cost reduction
(c) Skill
(d) Units
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2026MCQ· 1mImportance★★★★★
91% · 20/22 Questions
You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
Start your 14-day free trial to unlock the full solution →The chief benefit of outsourcing is cost reduction, so the answer is (b).
Outsourcing is the practice of contracting out non-core activities (like BPO/KPO work) to specialised external agencies rather than doing them in-house.
Why (b) Cost reduction:
- The biggest advantage a firm gains is a lower cost of operations, since the outside agency can do the work more cheaply and the firm avoids setting up its own facilities. …
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.