Which of the following is true about offshoring?
A)The smaller and newer a vendor,the better it is for the company to conduct business.
B)Small overseas upstarts do not take risks that larger,more established contractors take.
C)Any work that is proprietary and requires tight security should be offshored.
D)A company should avoid outsourcing work that is self-contained and does not need an exchange of information.
E)The actual cost savings from offshoring work can be less than a company expects.

Question

Quizplus · Accepted Answer

The actual cost savings from offshoring work can be less than a company expects. While offshoring may initially seem cost-effective due to lower labor costs, there can be a variety of hidden costs such as increased communication costs, quality control issues, and intellectual property concerns. Therefore, companies should carefully evaluate the potential risks and benefits before deciding to offshore any work. The other choices are incorrect because A and B do not necessarily hold true for all cases, C is not always advisable due to security concerns, and D may not fully utilize the benefits of outsourcing.

Which of the Following Is True About Offshoring