When might offshoring backfire?
A)If the procedures followed in managing the outsourced function remain the same.
B)Ithe overseas company uses the information to produce its own competitive product
C)When all of the current suppliers to the outsourced function are retained.
D)If the cost of the function is reduced by at least 50%.

Question

Quizplus · Accepted Answer

Offshoring may backfire if the overseas company uses the information to produce its own competitive product, which could harm the original company's market share and profits. The other options do not necessarily lead to offshoring backfiring.

When Might Offshoring Backfire