Which quadrant of the outsourcing matrix involves maintaining control within the organization?

Study for the CIPS Introducing Procurement and Supply (L2M1) Test. Engage with flashcards and multiple choice questions, each question includes hints and explanations. Ace your exam with confidence!

The correct choice indicates the "Retain" quadrant of the outsourcing matrix, which emphasizes maintaining control within the organization. This option typically reflects a strategic decision where an organization opts to keep certain functions or processes in-house rather than outsourcing them to external providers.

Organizations may choose to retain certain operations for several reasons, including the desire for greater oversight, the protection of proprietary information, enhanced quality control, and the ability to respond quickly to changes in the market or internal demands. By retaining control, organizations can ensure that their standards and procedures are consistently followed, which can lead to improved performance and alignment with organizational objectives.

In contrast, outsourcing would involve transferring these functions to external suppliers, potentially leading to loss of control over these processes. The eliminate option would suggest discontinuing certain operations altogether, rather than retaining them, and a strategic alliance typically involves collaboration with external partners which, while beneficial, does not align with the idea of maintaining internal control. Each of these alternatives diverges from the core tenet of the retain quadrant, which is focused on in-house management and supervision.

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