Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.

The assertion is true. By outsourcing certain functions or tasks to external service providers, companies can often access cheaper labor and resources. This can lead to cost savings in terms of wages, operational expenses, infrastructure, and other related costs.

The reason is also true. Outsourcing allows companies to tap into a global labor market and take advantage of lower labor costs in certain regions or countries. Additionally, companies can benefit from economies of scale, specialized expertise, and efficient processes offered by outsourcing partners, leading to cost savings.

Therefore, both the assertion and the reason are true, and the reason provides a correct explanation for the assertion.