Question

One criticism of outsourcing is that the ________.

• A. product quality suffers
• B. delays in meeting the demand
• C. interaction bears no flexibility
• D. price paid by the customer is very high

Answer 1

The correct option is A product quality suffers

Outsourcing is the process of delegating a company’s business process to the external agency or a third party. Economies of scale which means saving in costs gained by an increased level of production and lower wage costs are primary reasons for outsourcing. Outsourcing is done to draw benefits from low cost labour, improved quality to product and service innovation.

The drawback of outsourcing among the given options is that the product quality suffers.