Outsourcing

By: Lizbeth Colunga

Outsourcing is when a company gets products or services from an outside supplier, instead of doing the work to make it in its own facilities. When a company uses outsourcing it tend to cut back on costs. Companies also choose to outsource so that they focuse on their main business processes. Possible disadvantages to outsourcing include; Possible loss of control over a company's business processes, problems related to quality and turnaround time, and sluggish response times coupled with slow issue resolutions.

An impact of outsourcingis, it does take away jobs from the country your company is located in. That can remove money from your country’s economy therfore it can also hurt the country as a whole economic system. The economic principle that outsourcing relates to is comparitive advantage