What are the positive and negative effects of outsourcing?

Answer 1

Outsourcing can lead to cost savings and increased efficiency for companies, as it allows them to focus on core competencies while delegating non-essential tasks to specialized providers. However, it can also result in job losses and reduced job security for domestic workers, as well as potential quality control issues and communication challenges due to geographical and cultural differences. Balancing these effects is crucial for companies to maximize the benefits of outsourcing while minimizing its drawbacks.