NIOS Class 10 Business Studies Chapter 11 Outsourcing

NIOS Class 10 Business Studies Chapter 11 Outsourcing Solutions to each chapter is provided in the list so that you can easily browse throughout different chapters NIOS Class 10 Business Studies Chapter 11 Outsourcing Notes and select need one. NIOS Class 10 Business Studies Chapter 11 Outsourcing Question Answers Download PDF. NIOS Study Material of Class 10 Business Studies Notes Paper 215.

NIOS Class 10 Business Studies Chapter 11 Outsourcing

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Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 10 Business Studies Chapter 11 Outsourcing Solutions, NIOS Secondary Course Business Studies Solutions for All Chapter, You can practice these here.

Chapter: 11


Intext Questions 11. 1

I. Fill in the blanks: 

(i) The outsourcing of any product is relatively easy as the product normally has ……, …………, ………….. 

Ans:- Shape, Size, Texture.

(ii) ……………. is a process where customers send their work to be done at a different location? 

Ans:- Offshoring.

(iii) Converting the record of a company from paper to an electronic form is known as …………………….. 

Ans:- Data entry jobs.

(iv) BPOs are typically divided into two categories ………………… 

Ans:- Back office and front office outsourcing.

II. State whether the following statements are true or false: 

(i) Under back office processes, BPO employees necessarily interact with the customer. 

Ans:- False.

(ii) Communication level is higher in back office processes as compared to calling processes. 

Ans:- False.

(iii) In call centres, consultants usually have the history and the accounting information for the customers. 

Ans:- True. 

(iv) Companies start outsourcing with the critical and essential processes. 

Ans:- False.

(v) Enhancing the productivity and accuracy of the business is the major reason for outsourcing. 

Ans:- True.


Multiple Choice Questions

(i) Which of the following activities is not an advantage of KPO? 

(a) Optimal use of resources. 

(b) Solution to different Problems. 

(c) Focus on the main business. 

(d) Solution to different problems. 

Ans:- (d) Solution to different problems.

(ii) What is the full form of KPO? 

(a) Knowledge Process Outsourcing. 

(b) Know Process Outsourcing. 

(c) Knowledge Pure Outsource. 

(d) Knowledge Process Overseas.

Ans:- (a) Knowledge Process Outsourcing.

(iii) Which of the following makes outsourcing of a product difficult as the product normally does not have? 

(a) Shape. 

(b) Size. 

(c) Texture.

(d) Value.

Ans:-  (d) Value.

Terminal Exercise

1. What do you understand about outsourcing?

Ans:- Outsourcing is any task, operation, job or process that could be performed by employees within your company, but is instead contracted to another party for a significant period of time. 

2. Define Business Process Outsourcing. What are its advantages?

Ans:- Business process outsourcing (BPO) can be defined as the act of giving another party responsibility for performing what would otherwise be an internal system or service. For instance, an insurance company might outsource their claims processing program or a bank might outsource their loan processing system.

By outsourcing their back office operations to third world countries, companies have the following advantages: 

(i) Achieve cost reductions: This is made possible through process improvements, reengineering, and use of technologies that reduce and bring administrative and other costs under control. 

(ii) Key in on the company’s main business: With the day-to-day back office operations taken care of, the management is free to devote more time to building the company’s core businesses 

(iii) Obtain outside expertise: Rather than recruiting and training personnel, BPO ensures that domain experts from another company provide the needed guidance and skills.

(iv) Meet constantly changing customer demands: Many BPO vendors provide the management with flexible and scalable services to meet the customers’ changing requirements, and to support company acquisitions, consolidations, and joint ventures. 

(v) Achieving revenue increases: By outsourcing non-core processes, companies can focus on increasing their sales and market share, develop new products, expand into new markets, and enhance customer service and satisfactions.

3. What is meant by Knowledge Process Outsourcing? Explain its advantages.

Ans:- KPO is a new phenomenon that is picking pace in India. It is “Knowledge Process Outsourcing”. In simple words it is the upward shift of BPO in the value chain. Old BPO companies that used to provide basic backend or customer care support are moving up this value chain. “Unlike conventional BPO where the focus is on process expertise, in KPO, the focus is on knowledge expertise.”

The advantages of Knowledge process outsourcing are as follows:

(i) Accelerate Reengineering Benefits: Reengineering aims for drastic improvements in critical measures of performance such as cost, service, quality and speed. But the need to increase efficiency comes into direct conflict with the need to invest in core business.

(ii) Access to Top Class Capabilities: Good and competent providers make extensive investments in technology, people, and methodologies. They acquire expertise by working with many clients facing similar challenges.

(iii) Cash Infusion: Outsourcing often involves the transfer of assets from customer to the provider. Equipment, vehicles, facilities, and licences used in the current operations contain value and are sold to the vendor. The vendor uses these assets to provide services back to the client.

(iv) Optimal use of resources: Every organisation has limitations to the resources available to it. Outsourcing allows an organisation to redirect its resources, mostly human resources, from non-core activities toward activities which serve the core need of customers.

(v) Solution to difficult problems: Outsourcing is certainly one option for addressing the problem of managing difficult activities requiring core technical skills. It is essential to remember that outsourcing doesn’t imply abdication of management responsibility nor does it work well as a solution to solve critical and suddenly erupting trouble in a company.

(vi) Focus on main business: Outsourcing allows a company to focus on its core business by having operational non core functions assumed by an outside expert. Freed from devoting energy to these non core areas, the company can focus its resources on meeting its customers’ needs.

(vii) Best use of financial resources: There is a large amount of competition within most organisations for capital funds. The senior management is always in a fix to decide where to invest the capital funds.

(viii) Cost reduction: Companies which attempt to do everything themselves generally incur higher research, development, marketing and deployment expenses, and all of these are passed on to the customer. 

(ix) Minimum Risk: Tremendous risks are associated with the investments made by the organisations. Markets, competition, financial conditions, Government Regulations and Technologies all change quickly.

4. Distinguish between Business process outsourcing & Knowledge process outsourcing.


Business process outsourcingKnowledge process outsourcing.
The BPO industry is more about size, quantity and competence.KPO requires expertise having domain knowledge. They are highly skilled and business experts as they handle more dexterous work which requires experience.
The major difference is that BPO insists on labour and requires less skilled employees.KPO requires highly knowledgeable employees in the area that are outsourced like lawyers, doctors, MBA and skilled engineers .
The salary of a KPO employee is much higher than offered to the BPO employee.The people working for KPO are highly qualified such as Engineer, Doctor, CA, Lawyer etc.
BPO provides services like customer care, technical support through voice processes, tele-marketing, sales, etc.whereas KPO provides in-depth knowledge, expertise and analysis on complex areas like Legal Services, Business & Market Research, etc.

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