Which of the following is NOT an advantage of outsourcing?

• A. Loss of control over production processes
• B. Access to specialized expertise
• C. Reduced labor costs
• D. Increased flexibility in resource allocation

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of outsourcing. Outsourcing is when a company hires an external firm or individual to perform certain business activities or services instead of doing them internally.
2. Step 2: Identify common advantages of outsourcing. These typically include access to specialized expertise, reduced labor costs, and increased flexibility in resource allocation.
3. Step 3: Analyze each option given in the problem. Determine whether each option is generally considered a benefit or a drawback of outsourcing.
4. Step 4: Recognize that 'Loss of control over production processes' is usually a disadvantage because outsourcing means the company has less direct oversight and control over how tasks are performed.
5. Step 5: Conclude that the option 'Loss of control over production processes' is NOT an advantage of outsourcing, while the other options are advantages.