Which of the following best describes the impact of outsourcing on a company?

Outsourcing can significantly improve a company's efficiency by allowing it to focus on its core competencies. By delegating non-core activities to external suppliers or service providers, a company can concentrate its resources and efforts on areas where it has a competitive advantage. This strategic focus often leads to enhanced operational effectiveness, as the company can leverage the specialized skills and expertise of the outsourcing partner.

Moreover, outsourcing can lead to cost savings and operational efficiencies, as it allows companies to benefit from economies of scale, access to advanced technologies, and sometimes lower labor costs. By streamlining operations and reallocating resources toward higher-value activities, companies can bolster their overall productivity and responsiveness in a competitive market.

In contrast to this, the other options imply limitations or negative impacts associated with outsourcing, which do not fully capture its potential benefits. For instance, believing that outsourcing solely increases costs overlooks the possible savings and efficiency gains. Additionally, the assertion that outsourcing does not affect overall quality fails to recognize that quality can vary significantly based on the choice of outsourcing partner and the management of the relationship. Lastly, the idea that outsourcing always results in lower employee morale does not account for various factors, including how well the company manages transitions and communicates changes to its employees.