Q. Consider the following statements about outsourcing and high-level service sectors:
1.Quinary activities represent the highest level of decision-making and include professionals like policy makers and senior executives.
2.Knowledge Process Outsourcing (KPO) deals with routine tasks requiring low skills and minimal domain expertise.
3.Outsourcing is primarily driven by comparative cost advantages offered by skilled yet low-wage countries.
Which of the statements given above is/are correct?
Quarterly-SFG-Jan-to-March
Red Book

[A] 1 and 3 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: A
Notes:

Explanation:

  • Quinary activities include top-level decision-making roles like CEOs, consultants, and senior government officials.
  • KPO involves highly skilled, knowledge-based work such as R&D, legal analysis, and business consulting, not routine tasks.
  • Outsourcing is largely driven by comparative advantages — countries like India and the Philippines offer skilled labour at lower costs, making it profitable for foreign companies.

Source: 12th NCERT: Fundamentals of Human Geography


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