Which of the following is a disadvantage of outsourcing?
A) high implementation risk
B) inability to ensure a certain level of quality
C) takes up too much management time
D) potential loss of intellectual capital

Question

Quizplus · Accepted Answer

One of the biggest disadvantages of outsourcing is the potential loss of intellectual capital. When a company outsources a function, it may lose the knowledge and expertise of its own employees who previously performed that function. This can be a major challenge when the outsourced function is critical to the company's success. A company may also find it difficult to retrieve its intellectual capital once it has been outsourced, which can make it challenging for the company to bring the function back in-house.

Which of the Following Is a Disadvantage of Outsourcing