A healthcare organization in Canada outsources its insurance work to a service provider in South Asia.The employees in South Asia used to receive less than half the salary that the employees in Canada received.But in recent years,there has been a rapid increase in employees' salaries in South Asia.Slowly,the healthcare organization is reducing the level of outsourcing and is employing people in Canada.Which of the issues associated with offshore outsourcing describes the above scenario?

Question

Quizplus · Accepted Answer

The scenario describes a situation where the cost advantage of outsourcing to South Asia is diminishing due to the increase in employee salaries. This is an example of diminishing cost advantages associated with offshore outsourcing.

A Healthcare Organization in Canada Outsources Its Insurance Work to a Service