Outsourcing
Business: AQA A Level (2023 Specification), topic 4.5.3
The Value of Outsourcing
Outsourcing is when a business uses another business to make part of its product or provide part of its service.
Advantages of outsourcing
- Outsourcing can provide cost savings because a third-party business may be able to create or produce a product or service at a lower cost than the original business.
Disadvantages of outsourcing
- Outsourcing can lead to quality problems if the business that wins the outsourcing contract does not uphold the same quality standards.
- The business may lose its influence on quality control.