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The increasing pressure on American businesses to pursue cost-cutting
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15 Dec 2022, 12:22
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The increasing pressure on American businesses to pursue cost-cutting measures will eventually lead to an increase in the outsourcing of business processes to venues with lower overhead, such as India. However, this shift may not provide the dramatic gains for American business that might have been expected by an enterprise with an ethos for change that is oriented to preserving bottom-line profits. The difficulty is that a significant portion of American society remains uncomfortable with shifting business tasks overseas. Therefore, American businesses will predominantly opt for outsourcing opportunities for repetitive tasks that can easily be brought back to the United States if necessary. Nevertheless, opportunities for Indian firms to get a larger piece of the pie seem certain to arise. The growing emphasis on bringing down the cost of back-office operations is bound to offer increasing scope for Indian firms to become involved in novel types of ever more complex business processes.
Question 1
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Is your answer correct? Yes No Not Sure
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0% (00:00) correct
0% (00:00) wrong based on 0 sessions
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Select the sentence in which the author specifies a characteristic of jobs likely to be outsourced.
Therefore, American businesses will predominantly opt for outsourcing…
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50% (01:22) correct
50% (01:24) wrong based on 20 sessions
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The primary purpose of the passage is to
A. present an overview of the different types of business opportunities available to Indian firms B. present a reasoned prognosis of the business opportunities that may become available to Indian firms C. present the trend toward outsourcing business operations as a model case of business operations in action D. analyze how opportunities available to Indian firms were necessitated by an increasing number of American firms E. analyze the use of cost-cutting measures as a substitute for outsourcing in the new American business climate
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Question Stats:
25% (00:46) correct
75% (00:56) wrong based on 16 sessions
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Consider each of the following answer choices separately and select all that apply.
According the passage, despite the increasing pressure on American businesses to pursue cost-cutting measures, certain other factors preclude
A. Indian firms’ performing all of the business processes currently being performed onshore by American businesses. B. American businesses committing to outsourcing jobs overseas. C. Indian firms’ outsourcing more complex tasks to American firms in order to create an interconnected hierarchy of business needs.
Re: The increasing pressure on American businesses to pursue cost-cutting
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17 Dec 2022, 05:00
Expert Reply
QUESTION 1
Therefore, American businesses will predominantly opt for outsourcing… The author only once explains what type of jobs will be outsourced: repetitive tasks that can easily be brought back to the United States.
Re: The increasing pressure on American businesses to pursue cost-cutting
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17 Dec 2022, 05:15
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QUESTION 2
The author’s purpose is sometimes presented at the end of the passage, as is the case with this passage, which ends with [t]he growing emphasis on bringing down the cost of back office operations is bound to offer increasing scope for Indian firms to become involved in novel types of ever more complex business processes.Choice (B) presents the best paraphrase of this statement.Choices (A) and (C) are too broad; choices (D) and (E) are not supported by the passage.
Re: The increasing pressure on American businesses to pursue cost-cutting
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17 Dec 2022, 05:30
Expert Reply
QUESTION 3
Be sure you understand what the question is asking: You need to look for what you can prove isn’t going to happen in the text, despite the pressure to pursue cost-cutting measures. The passage states that American society remains uncomfortable shifting business tasks overseas. Therefore, the Indian Arms would not perform all of the business processes, making choice (A) a valid answer. Choice (B) is also supported by the text, because American businesses opt for outsourcing … tasks that can easily be brought back to the US. Choice (C) is not supported by the text, because India is not outsourcing tasks to American firms.
gmatclubot
Re: The increasing pressure on American businesses to pursue cost-cutting [#permalink]