Question

The most common driver for insourcing is to: a) Keep employees loyal to the company b) Make a system that cannot be bought c) Develop internal skill sets d) Maintain control over the development of the system e) Keep core competencies in-house.

Answer 1

Correct option is (e)

Step-by-step explanation:

Insourcing refers to identifying people withing the organization and delegate projects to them rather than getting it done from people outside the organization. Delegating work to other organizations is called outsourcing.

An advantage of insourcing is it helps in keeping core competencies within the organization. Core competency refers to the skills and advantages that a company has over its competitors. If it outsources projects, it has to share the competencies with the other organization which could be a threat in future. So, organizations should insource so as to not allow its competencies to be infiltrated by others.