Question

Adia, the chief executive office (CEO) of Touch Works Corp., believes that outsourcing would be a disadvantage to her company. She states that she would not be able to control the finances and assets of her company if work gets outsourced. Which of the following statements strengthens Adia's belief?

Answer 1

Adia's concern about outsourcing diminishing control over company finances and assets is valid, as outsourcing and offshoring can lead to job reductions and less managerial oversight while creating potential competitive threats from outsourced partners.

Step-by-step explanation:

One statement that strengthens Adia's belief that outsourcing could be a disadvantage to Touch Works Corp. is that control over company finances and assets can be significantly diminished when tasks are outsourced. There are numerous instances where outsourcing and offshoring have led to a reduction in high-paying jobs and a decrease in the number of supervisory and managerial positions within the parent company as companies consolidate operations and seek cost savings.

Additionally, dependency theory suggests that while companies want to ensure that their outsourced partners are stable enough to provide work, they also do not want them to become so self-sufficient that they pose a competitive threat.