Outsourcing

Question 1

Factor affect outsourcing 1

Answer 1

Wage rates
Lower labour cots
Lower prices or higher profit margins

Question 2

Factor affecting outsourcing 2

Answer 2

Quality/skills of labour force
Call centre
Literacy rates China
High costs if need training

Question 3

Factor affecting outsourcing 3

Answer 3

Infrastructure

Poor transportation - higher lead time

Question 4

Factor affecting outsourcing 4

Answer 4

Government restrictions
Lower levels of employee protection
Lower unit costs

Question 5

Judgement

Answer 5

Depends on nature of industry

Innovation and education more important than labour costs in high end jobs(pharmaceuticals)

Question 6

Define outsourcing

Answer 6

Passing a business process to a third party elsewhere