The two big drivers of outsourcing are
A. that a smaller in-house workforce and a low investment in intellectual capital will produce cost savings.
B. a desire to reduce the company's investment in fixed assets and the need to narrow the scope of the company's in-house competencies and competitive capabilities.
C. an increased ability to cut R&D expenses and an increased ability to avoid the problems of strategic alliances.
D. the ability to avoid capital investments that accompany vertical integration and a desire to reduce the company's risk exposure to changing technology and/or changing buyer preferences.
E. that outsiders can often perform certain activities better or more cheaply, and outsourcing allows a firm to focus its entire energies on those activities that are at the center of its expertise (its core competencies).
Answer: E
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