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    Outsourcing: long term costs

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    Outsourcing can appear too good to be true, and some of the benefits of outsourcing can be outweighed by its long-term costs. Conduct some research on the advantages and disadvantages of outsourcing. Using what you learned from your research, discuss an example of how the benefits of outsourcing are outweighed by its long-term costs.

    Please reference sources and maximum word count 350

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    In accordance with BrainMass standards this is not a hand in ready assignment but is only background help.

    Step 1
    The benefits of outsourcing are outweighed by its long term costs. An example of how benefits of outsourcing are outweighed by its long-term costs is the outsourcing of iPhone to South Asian countries. The main benefit was lower cost of manufacturing but the long-term cost was that the technology of IPhone was exposed to foreign manufacturers. These companies made similar products that were comparable to the iPhone. A large part of the market for smart phones was appropriated by foreign companies. Further, when a product manufacturing is outsourced, hidden costs creep in. In case of iPhone the result is ...

    Solution Summary

    The long term costs of outsourcing are discussed in the context of one example step-by-step in this solution. The response also has the sources used.