Question

Companies that outsource services reduce their costs but still grow at the same pace of companies that do not outsource.

True or False?

Answer 1

I would say False. From what I can remember, outsourcing means relocated services to another country, usually a third-world country with biggest example, China. Because it is cheaper,easier to produce and provide services in China and export them to US, many will choose to do so. Most companies will grow in much faster pace in they decde to outsource services to China, but companies that dont, and decide to produce in the US will lag behind. For reasons for this, currency values, labor laws, etc.