Mastery Quiz: Outsourcing

What are the potential advantages of outsourcing? (Select all that apply)

Lower labor costs

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Access to a larger talent pool from anywhere in the world

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The flexibility in managing the relationship with an outside resource

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Increased control of the project

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Founders should always seek referrals from personal and professional networks before hiring a vendor for outsourced work.

True

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False

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What are the potential disadvantages of outsourcing? (Select all that apply)

Risk of product copying

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Loss of control over manufacturing

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Increased shipping costs

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Lower labor costs

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What steps should be taken to ensure a successful relationship with an outsourcing vendor? (Select all that apply)

Provide product specifications that are clear and detailed

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Provide a statement of work (SOW)

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Paying for the product only after successful testing

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Keep the relationship friendly

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Information