Which of the following is a disadvantage of outsourcing?

a. It reduces corporate growth.

b. It reduces productivity and revenue growth.

c. It causes production delays.

d. It increases energy costs in the U. S.

Question

Alyson

Business

12 September, 13:19

Which of the following is a disadvantage of outsourcing?

a. It reduces corporate growth.

b. It reduces productivity and revenue growth.

c. It causes production delays.

d. It increases energy costs in the U. S.

+3

Answers (1)

Know the Answer?

Harrison Ashley · Answer 1

b. It reduces productivity and revenue growth.

Explanation:

The disadvantage of outsourcing is that it reduces productivity and revenue growth. Due to outsourcing, the company ceases to produce a product in its own facility and gives the entire production responsibility to third party. This is because the company might not have the capability to produce on its own or it might be costly for the company.

Since the company has to give production cost, over runs, labour cost etc along with margins to the third party, hence there is a decrease in revenue growth and productivity of the company.

Which of the following is a disadvantage of outsourcing?a. It reduces corporate growth.b. It reduces productivity and revenue growth.c. It causes production delays.d. It increases energy costs in the U. S.

Which of the following is a disadvantage of outsourcing?

a. It reduces corporate growth.

b. It reduces productivity and revenue growth.

c. It causes production delays.

d. It increases energy costs in the U. S.