Potential benefits of outsourcing includes (cont.):
• flexible capacity, dealing effectively with peaks and
troughs in demand
• lower exposure to risk from, say, varying demand
• increased geographical coverage and local knowledge
• a convenient way of entering new markets.
There are disadvantages to be set against this, such as
reduced control, inability to respond to unusual
circumstances, more complicated communications,
conflicting objectives, less control over costs, and so on.