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Outsourcing is the practice of obtaining from an independent

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Outsourcing is the practice of obtaining from an independent  [#permalink]

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Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Since a company’s chief objective is to realize the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.

Which of the following, if true, most seriously weakens the argument?

(A) If a company decides to use independent suppliers for a product, it can generally exploit the vigorous competition arising among several firms that are interested in supplying that product.

(B) Successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage.

(C) Certain tasks, such as processing a company’s payroll, are commonly outsourced, whereas others, such as handling the company’s core business, are not.

(D) For a company to provide a product or service for itself as efficiently as an independent supplier can provide it, the managers involved need to be as expert in the area of that product or service as the people in charge of that product or service at an independent supplier are.

(E) When a company decides to sue an independent supplier for a product or service, the independent supplier sometimes hires members of the company’s staff who formerly made the product or provided the service that the independent supplier now supplies.

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Originally posted by garimavyas on 12 May 2011, 08:32.
Last edited by broall on 15 Aug 2017, 21:11, edited 1 time in total.
Reformatted question, OA added
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New post 16 May 2011, 01:23
+1 for B. If the company's competitors get the knowhow or the expertise through its suppliers, they can give the company a run for its Money through several means,e.g., by coming up with better versions of same product at cheaper rates and hence the bottomline of the company will be affected directly. This is directly in clash with the primary objective of the company to maximize its profits by outsourcing.
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Re: Outsourcing is the practice of obtaining from an independent  [#permalink]

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New post 16 May 2011, 01:47
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garimavyas wrote:
Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Since a company’s chief objective is to realize the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.
Which of the following, if true, most seriously weakens the argument?


Argument: Just because a outsourcing company provides a product or service at a cheaper rate, one should avail its services.

(A) If a company decides to use independent suppliers for a product, it can generally exploit the vigorous competition arising among several firms that are interested in supplying that product.
This strengthens the argument to a degree. Competition among providers ensures that the outsourced company would be benefited further.

(B) Successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage.
Clearly weakens to a great degree. The outsourcing may enable company's competitors to develop replicas that outsourced company was relying on for its benefits, resulting in decreased sales and market bifurcation for the products it develops.

(C) Certain tasks, such as processing a company’s payroll, are commonly outsourced, whereas others, such as handling the company’s core business, are not.
Thanks for the information. I'll just skip.

(D) For a company to provide a product or service for itself as efficiently as an independent supplier can provide it, the managers involved need to be as expert in the area of that product or service as the people in charge of that product or service at an independent supplier are.
This statement discusses another reason as to why outsourcing is needed. Out of scope.

(E) When a company decides to sue an independent supplier for a product or service, the independent supplier sometimes hires members of the company’s staff who formerly made the product or provided the service that the independent supplier now supplies.
Possible drawback of outsourcing, agree!! But, it doesn't hurt the argument as badly as B does.

Ans: "B"

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New post 28 Jun 2014, 08:21
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Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Since a company's chief objective is to realize the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.

A. If a company decides to use independent suppliers for a product, it can generally exploit the vigorous competition arising among several firms that are interested in supplying that product.
B. Successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage.
C. Certain tasks, such as processing a company's payroll, are commonly outsourced, whereas others, such as handling the company's core business, are not.
D. For a company to provide a product or service for itself as efficiently as an independent supplier can provide it, the managers involved need to be as expert in the area of that product or service as the people in charge of that product or service at an independent supplier are.
E. When a company decides to use an independent supplier for a product or service, the independent supplier sometimes hires members of the company's staff who formerly made the product or provided the service that the independent supplier now supplies.
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Re: Outsourcing is the practice of obtaining from an independent  [#permalink]

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New post 30 Jun 2014, 01:29
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Incomplete question . What needs to be done ? Where is the stem
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New post 30 Jun 2014, 01:58
which of the following weaken the argument above?
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Re: Outsourcing is the practice of obtaining from an independent  [#permalink]

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New post 08 Jul 2014, 04:47
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Hi,

Please see the detail discussion at given link:

outsourcing-is-the-practice-of-obtaining-from-an-independent-113580.html

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New post 29 Jul 2016, 11:41
garimavyas wrote:
Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Since a company’s chief objective is to realize the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.

Which of the following, if true, most seriously weakens the argument?

(A) If a company decides to use independent suppliers for a product, it can generally exploit the vigorous competition arising among several firms that are interested in supplying that product.
(B) Successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage.
(C) Certain tasks, such as processing a company’s payroll, are commonly outsourced, whereas others, such as handling the company’s core business, are not.
(D) For a company to provide a product or service for itself as efficiently as an independent supplier can provide it, the managers involved need to be as expert in the area of that product or service as the people in charge of that product or service at an independent supplier are.
(E) When a company decides to sue an independent supplier for a product or service, the independent supplier sometimes hires members of the company’s staff who formerly made the product or provided the service that the independent supplier now supplies.


oa after discussion , please post your timing too


Argument says that outsourcing is a good practice if company can outsource the product cheaper.

In order to weaken the statement we have to look for an option that shows outsourcing is a bad option and it affects the business financially.

Looking at the choice, option B is talking about the bad effects of outsourcing on business.
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New post 15 Mar 2017, 17:02
Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Since a company’s chief objective is to realize the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.

Which of the following, if true, most seriously weakens the argument?

(A) If a company decides to use independent suppliers for a product, it can generally exploit the vigorous competition arising among several firms that are interested in supplying that product.
(B) Successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage.
(C) Certain tasks, such as processing a company’s payroll, are commonly outsourced, whereas others, such as handling the company’s core business, are not.
(D) For a company to provide a product or service for itself as efficiently as an independent supplier can provide it, the managers involved need to be as expert in the area of that product or service as the people in charge of that product or service at an independent supplier are.
(E) When a company decides to sue an independent supplier for a product or service, the independent supplier sometimes hires members of the company’s staff who formerly made the product or provided the service that the independent supplier now supplies.



Why would a company outsource to another company? to beat the market competition by minimizing the cost of production and either maximizing the profits or lowering the prices.But this is done to win the competition,and what if the third party/ outsourced company also work for another company in the same market and in competition with the first comapny.There may be risk of information leakage or sharing of resources and the competitive company would get adantage .This would defeat the entire purpose of outsourcing.

Option B is the correct answer for weakener of the Argument.
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New post 09 Apr 2017, 04:41
garimavyas wrote:
Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Since a company’s chief objective is to realize the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.

Which of the following, if true, most seriously weakens the argument?

(A) If a company decides to use independent suppliers for a product, it can generally exploit the vigorous competition arising among several firms that are interested in supplying that product.
(B) Successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage.
(C) Certain tasks, such as processing a company’s payroll, are commonly outsourced, whereas others, such as handling the company’s core business, are not.
(D) For a company to provide a product or service for itself as efficiently as an independent supplier can provide it, the managers involved need to be as expert in the area of that product or service as the people in charge of that product or service at an independent supplier are.
(E) When a company decides to sue an independent supplier for a product or service, the independent supplier sometimes hires members of the company’s staff who formerly made the product or provided the service that the independent supplier now supplies.


oa after discussion , please post your timing too



Is the answer B ? i got it in 1 min 59 sec. ??
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New post 11 Aug 2017, 02:52
You haven't written your question properly but I will still try to answer on what you might be trying to ask.
Outsourcing is usually done to minimize the expenses by contracting out several services and operations to a third party. It is a cost-effective technique which bring out more transparency. Outsourcing can be offshoring or onshoring depending upon the company's requirements.
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New post 15 Aug 2017, 11:26
vnigam21 wrote:
A Good CR question to try, guys please try and reply your comments for this CR question.

Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Since a company’s chief objective is to realize the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.
Which of the following, if true, most seriously weakens the argument?
(A) If a company decides to use independent suppliers for a product, it can generally exploit the vigorous competition arising among several firms that are interested in supplying that product.
(B) Successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage.
(C) Certain tasks, such as processing a company’s payroll, are commonly outsourced, whereas others, such as handling the company’s core business, are not.
(D) For a company to provide a product or service for itself as efficiently as an independent supplier can provide it, the managers involved need to be as expert in the area of that product or service as the people in charge of that product or service at an independent supplier are.
(E) When a company decides to sue an independent supplier for a product or service, the independent supplier sometimes hires members of the company’s staff who formerly made the product or provided the service that the independent supplier now supplies.

OA will be posted after some time/trials.


https://gmatclub.com/forum/outsourcing- ... 53143.html
See this!
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New post 15 Aug 2017, 11:39
Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Since a company’s chief objective is to realise the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.

Which of the following, if true, most seriously weakens the argument?

(A) If a company decides to use independent suppliers for a product, it can generally exploit the vigorous competition arising among several firms that are interested in supplying that product.
This is fact statement. The company will make use of the competition amongst the suppliers to get the cheapest rates. This doesn't strengthen or weaken the argument.

(B) Successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage.
Correct. If the internal information gets in the hands of competitor then its a huge loss for the company.

(C) Certain tasks, such as processing a company’s payroll, are commonly outsourced, whereas others, such as handling the company’s core business, are not.
We are not worried about the tasks that are outsourced or not.

(D) For a company to provide a product or service for itself as efficiently as an independent supplier can provide it, the managers involved need to be as expert in the area of that product or service as the people in charge of that product or service at an independent supplier are.
We are not worried about the expertise of the managers.

(E) When a company decides to sue an independent supplier for a product or service, the independent supplier sometimes hires members of the company’s staff who formerly made the product or provided the service that the independent supplier now supplies.
We are not worried about what will happen when a supplier is sued.
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New post 15 Aug 2017, 11:55
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Since this is a weaken question the objective is to identify the the conclusion, identify any gaps in logic in the argument and then work from wrong to right.

This argument concludes that any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced because a company’s chief objective is to realize the highest possible year-end profits.

But there could be many ways that could result in a loss in profit from this strategy. Option B is one of them and thus weakens the argument.

The fact that successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage can negatively affect the company's revenues and thus its profits.
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New post 15 Aug 2017, 12:07
Since this is a weaken question the objective is to identify the the conclusion, identify any gaps in logic in the argument and then work from wrong to right.
This argument concludes that any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced because a company’s chief objective is to realize the highest possible year-end profits.
But there could be many ways that could result in a loss in profit from this strategy. Option B is one of them and thus weakens the argument.
The fact that successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage can negatively affect the company's revenues and thus its profits.
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New post 20 Sep 2017, 17:50
Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Since a company’s chief objective is to realize the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.

Which of the following, if true, most seriously weakens the argument?

(A) If a company decides to use independent suppliers for a product, it can generally exploit the vigorous competition arising among several firms that are interested in supplying that product. - Incorrect - Out of scope

(B) Successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage. - Correct: When cause (outsourcing) occurs, effect (profit/business advantage) does not occur

(C) Certain tasks, such as processing a company’s payroll, are commonly outsourced, whereas others, such as handling the company’s core business, are not. - - Incorrect - Out of scope

(D) For a company to provide a product or service for itself as efficiently as an independent supplier can provide it, the managers involved need to be as expert in the area of that product or service as the people in charge of that product or service at an independent supplier are. - - Incorrect - Shell game

(E) When a company decides to sue an independent supplier for a product or service, the independent supplier sometimes hires members of the company’s staff who formerly made the product or provided the service that the independent supplier now supplies. - Incorrect - Out of scope
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New post 22 Sep 2017, 10:43
Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Since a company’s chief objective is to realize the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.

Type - weaken
Boil it down - Since a company’s chief objective is to realize the highest possible year-end profits, any product or service that can be obtained from an independent supplier for less than it would cost the company to provide the product or service on its own should be outsourced.
- Maybe there is some adverse effect of outsourcing

(A) If a company decides to use independent suppliers for a product, it can generally exploit the vigorous competition arising among several firms that are interested in supplying that product. - Irrelevant - this only tells a way how maybe a company can negotiate the best price

(B) Successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage.- Correct - If the trade secrets of the company falls into the hands of competitors then it will lose the competitive advantage

(C) Certain tasks, such as processing a company’s payroll, are commonly outsourced, whereas others, such as handling the company’s core business, are not. - Irrelevant - Our goal is to maximize outsourcing

(D) For a company to provide a product or service for itself as efficiently as an independent supplier can provide it, the managers involved need to be as expert in the area of that product or service as the people in charge of that product or service at an independent supplier are. - Irrelevant

(E) When a company decides to sue an independent supplier for a product or service, the independent supplier sometimes hires members of the company’s staff who formerly made the product or provided the service that the independent supplier now supplies.- Incorrect - this might be a cause of a little concern for the company but we are given this happens only sometimes

Answer B
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