Which of the following is NOT an issue with offshore outsourcing?

In the context of offshore outsourcing, increased labor costs typically do not present an issue; in fact, one of the main advantages of outsourcing is the potential for lower labor costs. Companies often choose to outsource to countries where labor is less expensive, thereby reducing overall operational costs while still maintaining a competitive edge.

On the other hand, unauthorized dissemination of technology can be a significant risk when firms share proprietary information with third-party vendors abroad. Likewise, the costs associated with monitoring quality and standards can escalate as companies need to ensure that their outsourced work meets specific criteria despite geographical and cultural differences. Hold-up problems due to asset specificity also arise in offshore outsourcing, as investing in specialized assets can create situations where the outsourcing party becomes dependent on the supplier, leading to potential exploitation or conflicts.

Thus, the assertion that increased labor costs is NOT an issue aligns with the fundamental rationale behind why companies engage in offshore outsourcing in the first place.