One of the criticisms of outsourcing is
(a) Customer has to pay high price
(b) Product quality may suffer
(C) Interaction bears no flexibility
(d) There are delays in meeting the demand.
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Answer:
a) Customer has to pay high price
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Answer:
Option a - The customer has to pay a high price.
Explanation:
- Outsourcing is the practice of delegating a company's services or creating goods to an external agency or a third party.
- It is a practice undertaken by the companies as a cost-cutting measure.
- Economies of scale: This means saving in costs gained by increased production and lower wage costs.
- Benefits of outsourcing are low-cost labour and service innovation.
- The quality might be affected.
- There are hidden costs, which are paid by the customers.
Hence, one of the criticisms of outsourcing is that the customers have to pay high prices.
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