Impact of Outsourcing on a Business
How does outsourcing impact a business's cost structure?
Outsourcing can lower a business's cost structure by reducing labor and operational costs, eliminating the need for capital investments, and allowing access to cost-effective resources and expertise.
What are the potential effects of outsourcing on employment and labor markets?
Outsourcing can have effects on employment and labor markets, including job displacement or relocation, changes in skill requirements, shifts in employment patterns, potential job creation in outsourcing destinations, impacts on wages and working conditions, and the need for retraining or reskilling of workers. The specific effects can vary depending onfactors such as the nature of the outsourced tasks, industry dynamics, regional economic conditions, and government policies.