Business – 4.3 Capacity utilisation and outsourcing – Outsourcing | e-Consult
4.3 Capacity utilisation and outsourcing – Outsourcing (1 questions)
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Benefits:
- Cost reduction: Lower labour and overhead costs can improve profit margins.
- Focus on core activities: Management can concentrate on strategic areas such as product development and marketing.
Drawbacks:
- Loss of control: Quality standards and delivery times may be harder to monitor.
- Reputation risk: Poor working conditions or unethical practices by the supplier can damage the brand.