Question

Discuss the pros and cons (advantages and disadvantages) of outsourcing for US companies.

Answer 1

Pros:

1.Increased revenue and more output is realized from investment.

2.Lower cost of production as cheap labour is used for production.

3.Access to diverse pool of labour with different skills and talents.

Cons:

1.Lesser control because you hire contractors instead of employees and because you don't have direct contact with the employees.

2.Communication issues due to the difference in time zones.

3.Lesser employment of US based workforce because their jobs are substituted with lower wage outsourced labour force.