The big risk of employing an outsourcing strategy is:
A. causing the company to become partially integrated instead of being fully integrated.
B. hollowing out a firm's own capabilities and losing touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success.
C. hurting a company's R&D capability.
D. putting the company in the position of being a late mover instead of an early mover.
E. increasing the firm's risk exposure to both supply chain management failures and shifts in the composition of the industry value chain.
Answer: hollowing out a firm's own capabilities and losing touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success.