Read the given passage and answer the following questions.
Outsourcing or contracting out is giving work to an outside agency to improve efficiency and to reduce costs. When outsourcing involves transferring work to overseas locations, it is described by the term off-shoring, although both off-shoring and outsourcing are used together. Business activities that are outsourced include information technology (IT), human resources, customer support and call centre services and at times also manufacturing and engineering.
Data processing is an IT related service easily be carried out in Asian, East European and African countries. In these countries IT skilled staff with good English language skills are available at lower wages than those in the developed countries. Thus, a company in Hyderabad or Manila does work on a project based on GIS techniques for a country like U.S.A. or Japan. Overhead costs are also much lower making it profitable to get job-work carried out overseas, whether it is in India, China or even a less populous country like Botswana in Africa. Outsourcing has resulted in the opening up of a large number of call centres in India, China, Eastern Europe, Israel, Philippines and Costa Rica. It has created new jobs in these countries. Outsourcing is coming to those countries where cheap and skilled workers are available. These are also out-migrating countries.
Which one of the following business activities is NOT outsourced?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Agricultural activities
The passage states: “Business activities that are outsourced include information technology (IT), human resources, customer support and call centre services and at times also manufacturing and engineering.”
Option (1) Information technology — Outsourced. IT work, such as data processing, is often outsourced.
Option (2) Customer support — Outsourced. Customer support is one of the business activities that are outsourced.
Option (3) Call centre services — Outsourced. Outsourcing has opened a large number of call centres in countries such as India and the Philippines.
Option (4) Agricultural activities — Not outsourced. Agriculture is a primary activity, which depends directly on the land and the environment. It is not among the business activities that are outsourced.