12th OCM Chapter 5 Exercise (Emerging Modes of Business) Maharashtra Board – Free Resource

12th OCM Chapter 5 Exercise

Chapter 5 – Emerging Modes of Business

Q.1 (A) Select the correct option and rewrite the sentences.

1. For online transactions _____ is required.
a. registration
b. trading
c. business

2. The term ‘e-business’ is derived from the term _____ and e-commerce.
a. Cash
b. e-pay
c. e-mail

3. The transactions under _____ are between consumers and consumers.
a. B2B
b. C2C
c. B2C

4. The process of contracting a business function to someone else is called as _____.
a. outsourcing
b. trading
c. e-business

5. In online shopping customers put the product in the _____.
a. shopping mall
b. shopping cart
c. shopping bag

Q.1 (B) Match the pairs.

Group A	Group B
a) E-business	1) Consumer to consumer
b) B2C	2) Exist everywhere
c) Outsourcing	3) First step
d) Digital cash	4) Business to consumer
e) Registration	5) Electronic business
	6) BPO
	7) RTO
	8) Efficient business
	9) exist only in cyberspace
	10) Last step

Answers.
a. 5) Electronic business
b. 4) Business to consumer
c. 6) BPO
d. 9) exist only in cyberspace
e. 3) First step

Q.1 (C) Give one word/phrase/term for the following statements.

1) The stage where the goods bought are delivered to the customer.
Answer: Delivery stage

2) The term is derived from the terms e-mail and e-commerce.
Answer: e-business 

3) The transaction which is done with the help of the internet.
Answer: online transactions

4) The first step in online transaction.
Answer: Registration

5) The process of contracting a business function to specialized agencies.
Answer: outsourcing

6) Subset of outsourcing.
Answer: BPO

7) Sub-segment of BPO.
Answer: KPO

8) One of the value-added BPO services which involve legal work.
Answer: LPO

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.1 (D) State whether the following statements are true or false.

1) It is easy to set up e-business as compared to traditional business. (True)
2) The term e-business is derived from the term e-mail and e-commerce. (True)
3) e-business allows you to work across the globe in any field. (True)
4) LPO stands for legal product outsourcing. (False)
5) KPO requires advanced analytical and technical skills. (True)
6) With the help of outsourcing, company cannot focus on the core areas. (False)

Q.1 (E) Find the odd one out.

l) BPO, RTO, LPO, KPO
2) B2B,B2C,A2Z,C2C
3) Debit card, Credit card, Aadhar card, ATM card.

Q.1 (F) Complete the sentences.

1) E-business is an abbreviation for electronic business.
2) The term e-business came into existence in the year 1997.
3) E-business means using the internet to connect people and processes.
4) E-business is superset of e-commerce.
5) E-commerce is subset of e-business.
6) The process of contracting a business function to specialized agencies is known as outsourcing .

Q.1 (G) Select the correct option.

Group A	Group B
1) Registration	First step
2) Superset of e-commerce	e-business
3) Payment mechanism	Last step
4) Subset of E-business	e-commerce
5) Business to Business	B2B

Q.1 (H) Answer in one sentence.

1) What is E-business?
Answer: E-business or electronic business, is the administration of conducting business via the internet. This would include the buying and selling of goods or services, along with providing technical or customer support through the internet.

2) What is outsourcing?
Answer: Outsourcing is the process of contracting some business functions to specialized agencies.

3) What is Online Transaction?
Answer: Online transaction is done with the help of the internet. It can’t take place without a proper internet connection. Online transactions occur when a process of buying and selling takes place through the internet.

4) What is shopping cart?
Answer: The shopping cart gives a record of all the items selected by the buyer to be purchased, the number of units or quantity desired to be bought per item selected, and the price for each item.

5) What is digital cash?
Answer: Digital Cash is a form of electronic currency that exists only in cyberspace and has no real physical properties, but offers the ability to use real currency in an electronic format.

6) What is BPO?
Answer: BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business processes to a third-party service provider. 

7) What is KPO?
Answer: KPO is the sub-segment of BPO, in which the outsource service provider is hired not only for its capacity to perform particular business process or function but also to provide expertise around it.

8) What is LPO?
Answer: LPO is a type of KPO that is specific to legal services, ranging from drafting legal documents, and performing legal research to offering advice. 

Q.1(I) Correct the underlined word and rewrite the following sentences.

1) E-business is hard to start.
Answer: Easy

2) There are five stages of online transactions.
Answer: Three

3) Registration is the Last step in online transaction.
Answer: First

4) Digital cash is form of plastic currency.
Answer: Digital Currency

5) KPO includes less knowledge-based and specialized work.
Answer: More

Q.1 (J) Arrange in proper order

1) Purchase or sale / Delivery stage / Pre-purchase or sale.
Answer:
a) Pre-purchase or sale.
b) Purchase or sale
c) Delivery stage

2) Placing an order, Cash on delivery, Registration
Answer:
a) Registration
b) Placing an orders
c) Cash on delivery

Q.2 Explain the following terms/concepts.

1) E-business
Answer: The term ‘E-business’ i.e electronic business is derived from the terms e-mail and e-commerce.
E-business or electronic business is the administration of conducting business via the internet. This would include the buying and selling of goods or services, along with providing technical or customer support through the internet.

2) B2B
Answer: In this form, the buyer and seller are both business entities and do not involve individual consumers. Here, both the parties involved in e-commerce transactions are business firms and hence the name B2B i.e. business to business. These include supplying ancillary parts/components to manufacturers providing value-added services like catering and also providing manpower.

3) B2C
Answer: The transactions under B2C are between business firms and consumers. Firms use their sites for a range of marketing activities. These include a promotion, product information, reviews about the product/ service, and delivery of the product at the doorstep. The cost of products and services is kept low through this method and the speed of transactions is also faster. Examples of websites: www.flipkart.com etc.

4) C2C
Answer: It facilitates the online transaction of goods or services between two people. Consumer-to-consumer (C2C) involves electronically facilitated transactions between consumers through some third party. A common consumer post an item for sale and other consumers bid to purchase it. The sites are only intermediaries, just to match the consumers. For example, eBay.

5) Outsourcing
Answer: Outsourcing is the process of contracting a business function or any specific business activity to specialized agencies mostly the non-core areas such as sanitation, security, household pantry, etc. are outsourced by the company. The company makes a formal agreement with the agency.

6) BPO
Answer: BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business processes to a third-party service provider. BPO refers to the outsourcing of peripheral activities of the organization to an external organization to minimize cost and increase efficiency.

7) LPO
Answer: LPO refers to the practice of law firm or corporation obtaining legal support services from an outside law firm or legal support services company. LPO is the industry in which in-house legal departments or organizations outsourced legal work to such areas where it can be done at less cost. For example, areas like US or Europe outsourced legal work to India, where it can be performed at a significantly decreased cost.

8) KPO
Answer: KPO is described as the functions related to knowledge and information outsourced to third-party service providers. KPO is the allocation of relatively high-level tasks, to an outside Organization or a different group usually in a different geographic location. KPO is a subset of BPO. KPO involves outsourcing of core functions which may or may not give cost benefit to the parent company but surely helps in value addition.

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.3 Study the following case/situation and express your opinion.

1) Abhay purchases some gift articles online from www.flipkart.com. At the same time Sheetal purchased gift from e-bay.com. 
i. Which website is related to C2C?
ii. Which website is related to B2C?
iii. What first step does Abhay need to follow?

Solution:
i) eBay.com website is related to C2C.
ii) www.flipkart.com is related to B2C.
iii) Firstly Abhay need to register with www.flipkart.com. Because registration is the first step.

2. Satvik purchases watch from Titan shop and his friend Shambhavi purchases watch from online shopping site.
i. Which shopping is from traditional business?
ii. Which shopping is from e-business?
iii. Which business involved high risk?

Solution:
i) Purchase of watch by Satvik from Titan shop is an example of shopping from traditional business.
ii) Purchase of watch by Shambhavi from online shop is an example of shopping from e-business.
iii) From customer point of view online business involved high risk because there is no direct contact, and from business point of view traditional business involve high risk because it requires more capital.

3. Mr. Ved made his payment by cheque at the same time Mr. Shlok made his payment by fund transfer.
i. Whose payment is faster?
ii. Whose payment is related to traditional business?
iii. Whose payment is related to e-business?

Solution:
i) Payment made by fund transfer is faster than payment made by cheque.
ii) Mr. Ved payment by cheque is related to traditional business.
iii) Mr. Shlok payment by fund transfer is related to e-business.

Q.4 Distinguish between.

1) Traditional business and E-Business.

Points	Traditional business	E-Business.
1) Formation	Traditional business takes lengthy and complicated procedure to form.	E-Business is easy to form.
2) Setting up cost	It takes huge capital in order to setup.	It takes a very nominal cost.
3) Risk Involved	Less Risk involved as parties have personal interaction.	High risk involved as there is no direct contact between the parties.
4) Area covered	Traditional business is limited to particular area so scope is limited.	E-Business covers entire world and so scope is vast.
5) Customer interaction	Face-to-face interaction is possible.	In E-business, there is absence of face-to-face interaction.
6) Physical inspection	Goods can be inspected physically before purchase.	Goods cannot be inspected physically before purchase.
7) Resource focus	Traditional business resources focus on supply side.	E-business resources focus on demand side.
8) Delivery of goods	In traditional business delivery of goods is instant.	In E-business delivery of goods takes time.

2) E-business and E-commerce

Points	E-business	E-commerce
1) Meaning	E-business is conduct of business processes on the internet.	E-commerce involves commercial transactions done over internet.
2) What is it?	E-business is superset of E-commerce.	E-commerce is subset of  E-business.
3) Features	E-business includes all kinds of pre-sale and post-sale efforts.	E-commerce just involves buying and selling of products and services.
4) Concept	It is broader concept that involves market surveying, supply chain and logistic management and using data-mining.	E-commerce is narrower concept and restricted to buying and selling.
5) Transaction	It is used in the context of B2B transactions.	It is more appropriate in B2C  context.
6) Which network is used?	E-business can involve the use of internet, intranet, or extranet.	E-commerce involves the mandatory use of internet.

3) BPO and KPO

Points	BPO	KPO
1) Meaning	BPO refers to the outsourcing  of nonprimary activities of the organization to an external organization to minimize cost and increase efficiency.	KPO is another kind of outsourcing whereby, functions related to  knowledge and information are outsourced to third-party service providers.
2) Degree of complexity	BPO is less complex.	KPO is complex.
3) Requirement	BPO requires process expertise.	KPO requires knowledge and expertise.
4) Talent required in employees	BPO requires good communication skills.	KPO requires professional  qualified workers.
5) Focus on	BPO focus on low-level process.	KPO focus on high-level process.

Q.5 Answer in brief.

1) What is outsourcing? Illustrate with a suitable example.

Answer:
Outsourcing is the process of contracting a business function or any specific business activity to specialized agencies mostly the non-core areas such as sanitation, security, household pantry, etc. are outsourced by the company. The company makes a formal agreement with the agency.

The agency can send the required manpower to the company. The agency charges the company for their services. With the help of outsourcing, companies can focus on their core areas.

Outsourcing is the process of contracting some business functions to specialized agencies. The company benefits in two ways.
1. It reduces its own cost
2. It uses the expertise of the firm which specializes in a particular kind of service.

Examples of outsourcing – The establishments such as shops, malls, housing societies, offices, etc. outsource facilities like canteen, sanitation, security, etc. In the same way arrangements for weddings, anniversaries, and birthday celebrations can also be outsourced.

2) What is BPO? Explain in detail.

Answer:
Meaning – BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business processes to a third-party service provider. BPO refers to the outsourcing of peripheral activities of the organization to an external organization to minimize cost and increase efficiency.

BPO refers to the outsourcing of peripheral activities of the organization to an external organization to minimize cost and to increase efficiency. For example, customer care centers for various banks, service providers, etc.

Advantages of BPO:

1) Productivity improvement: Educated or skilled people perform the task efficiently and thus improve productivity.

2) Optimum utilization: BPO enables optimum utilization of scarce resources.

3) Reduction in cost: Cost saving can be significant to any business. BPO not only helps to reduce cost but also increase productivity and increase revenues.

4) Improved human resources: Improved human resources is another great advantage of BPO. Outsourcing gives a company the ability to get access to skilled and trained manpower at low rates.

Disadvantages of BPO:

1) Communication problem: There can be a communication gap between the client and vendor companies due to misunderstanding and miscommunication. 

2) Different time zones: The client and the vendor operate in two different time zones. The difference in time can create many problems during online meetings, communication, etc.

3) Loss of control: Due to communication errors, time differences, client company can at times lose control of the project.

3) What is KPO? Explain in detail.

Answer:
KPO is the outsourcing of core information related to business activities that are competitively important or form an integral part of a company’s value chain.

Meaning: KPO is a form of outsourcing, in which knowledge-related and information-related work is carried out by workers in a different company or by a subsidiary of the same organization. Which may be in the same country or in an offshore location to save cost.

KPO requires advanced analytical and technical skills as well as a high degree of specialist expertise. KPO allows both core and non-core activities.

Advantages:

(1) Cost reduction is possible as Clients get professional services at a cost-effective price.
(2) Business organizations can hire skilled employees from KPO service providers.
(3) High-end services are provided at a lower cost to decrease unemployment and benefit their economy.
(4) Provides flexibility in terms of HRM (human resource management) and time management.

Disadvantages:

(1) Security of the organization is questioned.
(2) The character of the employee and the quality of the work cannot be assured.
(3) KPO is time-consuming and cannot provide a quick fix to the company seeking immediate results.
(4) Lack of communication between partners due to legal, language, and cultural barriers can lead to complications.
(5) Reduction in communication due to language barrier.

4) What is LPO? Explain in detail.

Answer:
LPO is a type of KPO that is specific to legal services, ranging from drafting legal documents, and performing legal research to offering advice. 

LPO refers to the practice of law firm or corporation obtaining legal support services from an outside law firm or legal support services company. LPO is the industry in which in-house legal departments or organizations outsourced legal work to such areas where it can be done at less cost. 

For example, areas like US or Europe outsourced legal work to India, where it can be performed at significantly decreased cost. LPO is high-end industry that has been growing rapidly in recent years.

Meaning:

Legal outsourcing has gained tremendous ground in the past few years in India. It achieved success by producing service such as document review, legal research, and writing, drafting of briefings, etc.

Advantages:

1) One of the most significant advantages of outsourcing legal functions is cost savings.
2) Outsourcing legal work to external vendors allows organizations to access high-level talent and niche expertise that does not exist within the firm.
3) Employing a combination of in-house and external talent allows law firm and organizations to tailor their liabilities in response to workload and client demands. Flexible staffing also reduces firm overhead.

Disadvantages: 

1) There will be problem of authenticity as some important documents need to be shared with the outsourcing firm.
2) There may be a problem of in-depth knowledge of all relevant laws. 
3) There will be problems of cultural and language barriers that could hinder communication between domestic and international teams. 
4) L.P.O. also gets affected by geographical hurdles between firm and clients.

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.6 Justify the following statements.

1) It is easy to set up e-business as compared to traditional business.

Answer:
a) Traditionally trading by the buyers and sellers is done through three channels like face to face, mail, and phone.
b) The internet has become the fourth channel for trade. E-Business is booming and allowing businesses to sell more and at a lower cost.
c) In E-business investment requirement is low as compared to traditional business as the store does not have physical existence.
d) The formation of a traditional business is difficult, whereas forming an e-business is relatively easy to start.
Hence, it is easy to set up e-business as compared to traditional business.

2) E-business allows user to work across the globe in any field.

Answer:
a) The internet and web support together provide opportunities in selling, customer relationship, geographic expansion, logistic,s and supply chain integration.
b) Internet is truly without boundaries.
c) On one hand, it allows the seller access to the global market. On the other hand, it offers a freedom to the buyer to choose products from almost any part of the world.
d) No need of face to face interaction between buyer and seller.
e) And there is no need for any retailer or wholesalers, it results in reducing the costs and increase the profits.
Hence, E-business allowed users to work across the globe in any field.

3) Online transaction is done with the help of the internet.

Answer:
a) Online transactions occur when a process of buying and selling takes place through the internet.
b) When a consumer purchases a product or a service online, he/she pays for it through online transaction.
c) Before online shopping one has to register with the online vendor by filling up a registration form. Registration is the first step in online transaction.
d) When a customer likes a product or service he/she puts the product in the shopping cart.
e) Payment is the last step in online transaction. The buyer has to select the payment option.
Hence, Online transaction is done with the help of the internet.

Q.7 Attempt the following.

1) What are the advantages and disadvantages of e-business?

Answer:
Advantages of e-business

1) Ease of formation
The formation of traditional business is difficult, whereas forming an e-business is relatively easy to start. 

2) Lower Investment requirements
The investment requirement is low as compared to traditional business as the store does not have physical existence and can be managed with less manpower so if a trader does not have much of the investment but has contacts (network), he can do fabulous business.

3) Speed
This benefit becomes all the more attractive when it comes to information. Much of the buying or selling involves exchange of information that internet allows at the click of a mouse.

4) Movement towards a paperless society
The use of internet has considerably reduced the dependence on paperwork. Thus, recording and referencing of information has become easy.

5) Government support
The government provides favourable environment for setting up of e-business. This support ensures maximum transparency.

6) Easy payment
The payment in e-business is done by credit card, fund transfer, etc. and it is available round the clock.

Disadvantages of e-business

(1) Lack of personal touch
E-business lacks the personal touch. One cannot touch or feel the products. So it is difficult for consumers to check the quality of products.

(2) Delivery Time
The delivery of the products takes time. In traditional business, you get the product as soon as you buy it. But that doesn’t happen in online business. This time lag often discourages customers e.g. Amazon now assures one-day delivery.

(3) Security issues
There are a lot of people who scam through online businesses. Also, it is easier for hackers to get your financial details. It has a few security and integrity issues. This also causes disturbance among potential customers.

(4) Government interference
Sometimes Government monitoring can lead to interference in the business.

(5) High Risk
High Risk is involved as there is no direct contact between the parties. In case of fraud, it becomes difficult to take legal action.

Note: Write any 5-6 points for 5 marks question.

2) What are the types of e-business? Explain.

Answer:
Types of marine insurance Policies

1) Business to Business (B2B)

In this form, the buyer and seller are both business entities and do not involve individual consumers. Here, both the parties involved in e-commerce transactions are business firms and hence the name B2B i.e. business to business. Transactions between business firms come under this category.

2) Business to Consumer (B2C)

As the name implies, B2C transactions have business firms at one end and its customers on the other end. The transactions under B2C are between business firms and consumers. Firms use their sites for a range of marketing activities. These include a promotion, product information, reviews about the product/service, and delivery of the product at the doorstep. Examples of websites: www.flipkart.com etc.

3) Consumer to Business (C2B)

Consumer to Business is a growing arena where the consumer requests a specific service from the business. It enables buyers to quote their own price for specific goods or services. A consumer posts his request with a set budget online and, companies review the customer’s requirements and bid out the project. For example, pest control services, taxi services, doorstep food delivery, etc.

4) Consumer to consumer (C2C)

It facilitates the online transaction of goods or services between two people. Consumer to consumer (C2C) involves electronically facilitated transactions between consumers through some third party. A common consumer post an item for sale and other consumers bid to purchase it. For example, eBay.

5) Business to Administration (B2A)

This part of e-commerce encompasses all transactions conducted online between business and public administration. For example, registration of companies, payment of taxes, getting permits, etc.

6) Consumer to Administration (C2A)

The consumer to Administration model encompasses all electronic transactions conducted between individuals and public administration. For example, getting a passport, Aadhaar card, licenses, etc.

Note: Write any 5-6 points for 5 marks question.

3) What are the advantages of outsourcing?

Answer:
1) Overall cost advantages
 It reduces the cost and also saves time and effort on training costs.

2) Stimulates entrepreneurship, employment, and exports
Outsourcing stimulates entrepreneurship, employment, and exports in the country.

3) Low manpower Cost
 The manpower cost is much lower than that of the host company.

4) Access to professional, expert, and high-Quality services
 Mostly the tasks are given to people who are skilled in that particular field. This provides us with a better level of service and fewer chances of errors.

5) Emphasis on core process rather than the supporting ones
With its help companies can focus on their core areas which lead to better profits and increase the quality of their products.

6) Investment requirements are reduced
The organization can save on investing in the latest technology, software, and infrastructure and let the outsourcing partner handle the entire infrastructure.

7) Increased efficiency and productivity
There is an increased efficiency and productivity in the non-core areas of an organization.

8) Knowledge sharing
Outsourcing enables the organization to share knowledge and best practices with each other, it helps develop both the companies and also boosts goodwill in the industry.

4) What are the disadvantages of outsourcing?

Answer:
1) Lack of customer focus
An outsourced vendor may be catering to the needs of multiple organizations at a time. In such a situation, he may lack complete focus on an individual organization. As a result, the organization may suffer.

2) A threat to security and confidentiality
The confidential information of the organization may be leaked to a third party, so there are security issues.

3) Dissatisfactory services
Some of the common problem areas with outsourcing include stretched delivery time and substandard quality.

4) Ethical issues
The major ethical issue is taking away employment opportunities from one’s own country when the function is outsourced to a company from another country.

5) Other disadvantages
i) misunderstanding of the contracts.
ii) lack of communication.
iii) poor quality and delayed services.

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.8 Answer the following.

1) Explain the steps involved in online transactions.

Answer:
1) Registration

Before online shopping one has to register with the online vendor by filling up a registration form. Registration is the first step in online transaction. For online transactions, registration is required. The consumer needs to login to a particular website to buy a particular article or service. The customer’s email ID, name, address, and other details are saved and are safe on the website.

2) Placing an Order

It is the second step in online transactions. When a customer likes a product or service he/she puts the product in the shopping cart. The shopping cart gives a record of all the items selected by the buyer to be purchased, the number of units or quantity desired to be bought per item selected, and the price for each item. The buyer then proceeds to the payment option after selecting all the products.

3) Payment

It is the last step in an online transaction. The buyer has to select the payment option. These payment systems are secured with very high-level encryption. Personal financial information is completely secure. The following are some ways in which we can make this payment.

a) Cash on Delivery
In this type of payment, the buyer pays when he/she receives the product. The payment is made at the doorstep. The customer can pay in cash or by debit or credit card.

b) Cheque
In this type of payment, the buyer sends a cheque to the seller and the seller sends the product after the realization of the cheque.

c) Net Banking transfer
In this type of payment, the payment is transferred from the buyer’s account to the seller’s account electronically. After the payment is received by the seller, the seller dispatches the goods to the buyer. It is an electronic facility of transferring funds through the internet.

d) Credit or Debit card
The buyer makes payment through debit or credit card and the amount gets deducted from customer’s account. Debit card or credit card are popularly known as “Plastic Money”. They are mostly used for online payments.

e) Digital Cash
Digital Cash is a form of electronic currency that exists only in cyberspace and has no real physical properties, but offers the ability to use real currency in an electronic format.

2) What is outsourcing? Explain advantages and disadvantages of outsourcing.

Answer:
Outsourcing is the process of contracting some business functions to specialized agencies. The company benefits in two ways.
1. It reduces its own cost
2. It uses the expertise of the firm which specializes in a particular kind of service.

Advantages of Outsourcing

1) Overall cost advantages

It reduces the cost and also saves time and effort on training costs.

2) Stimulates entrepreneurship, employment, and exports

Outsourcing stimulates entrepreneurship, employment, and exports in the country.

3) Low manpower Cost

The manpower cost is much lower than that of the host company.

4) Access to professional, expert, and high-Quality services

Mostly the tasks are given to people who are skilled in that particular field. This provides us with a better level of service and fewer chances of errors.

5) Emphasis on core process rather than the supporting ones

With its help companies can focus on their core areas which lead to better profits and increase the quality of their products.

6) Investment requirements are reduced

The organization can save on investing in the latest technology, software, and infrastructure and let the outsourcing partner handle the entire infrastructure.

7) Increased efficiency and productivity

There is an increased efficiency and productivity in the non-core areas of an organization.

8) Knowledge sharing

Outsourcing enables the organization to share knowledge and best practices with each other, it helps develop both the companies and also boosts goodwill in the industry.

Disadvantages of Outsourcing

1) Lack of customer focus

An outsourced vendor may be catering to the needs of multiple organizations at a time. In such a situation, he may lack complete focus on an individual organization. As a result, the organization may suffer.

2) A threat to security and confidentiality

The confidential information of the organization may be leaked to a third party, so there are security issues.

3) Dissatisfactory services

Some of the common problem areas with outsourcing include stretched delivery time and substandard quality.

4) Ethical issues

The major ethical issue is taking away employment opportunities from one’s own country when the function is outsourced to a company from another country.

5) Other disadvantages

i) misunderstanding of the contracts.
ii) lack of communication.
iii) poor quality and delayed services.

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

12th Commerce OCM Textbook Solutions

Chapter Name	Solution Link
1) Principles of Management	Click Here
2) Functions of Management	Click Here
3) Entrepreneurship Development	Click Here
4) Business Services	Click Here
5) Emerging Modes of Business	Click Here
6) Social Responsibilities of Business	Click Here
7) Consumer Protection	Click Here
8) Marketing	Click Here

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12th Commerce Paper Pattern and Chapter Wise Marks Distribution	Click Here
Sample Paper of 12th Commerce for Practice	Click Here
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Old Question Papers of 12th Commerce with solution (All Subjects)	Click Here