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The disadvantages of global outsourcing are?a.Hidden costsb.Cut down customer issuesc.Cheap labour costd.Beat competition

Question

The disadvantages of global outsourcing are?

a. Hidden costs
b. Cut down customer issues
c. Cheap labour cost
d. Beat competition

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Solution

The disadvantages of global outsourcing are:

a. Hidden costs: While outsourcing may seem cost-effective initially, there can be many hidden costs. These can include the cost of selecting a vendor, transitioning work to the vendor, managing the vendor, and unexpected changes.

b. Cut down customer issues: This is not a disadvantage, but rather a potential advantage of outsourcing. However, if not managed properly, outsourcing can lead to customer service issues due to language barriers, time zone differences, and lack of control over the service quality.

c. Cheap labour cost: While this can be an advantage in terms of cost savings, it can also be a disadvantage. The use of cheap labor can lead to ethical issues and can also result in low-quality products or services.

d. Beat competition: This is not a disadvantage, but rather a potential advantage of outsourcing. However, if competitors are also outsourcing, it may not provide a significant competitive edge. Additionally, over-reliance on outsourcing can lead to a loss of internal capabilities, which can be detrimental in the long run.

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