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Historically, companies outsourced work for which two reasons?
AProduct quality and speed to market
BTax savings and simpler legal structures
CCost reduction and labour needs
DBrand building and customer loyalty
Answer & Solution
Correct answer: C. Cost reduction and labour needs
1. Outsourcing has been practised for decades, beginning with functions such as payroll.
2. Historically companies outsourced for two main reasons, cost reduction and labour needs.
3. To satisfy both at once, work was often placed with firms in other countries.
4. Tax structures, brand building, and loyalty are not the historical drivers named.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.8 Outsourcing_
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