What is a key benefit of outsourcing regarding labor costs?

One key benefit of outsourcing concerning labor costs is the use of specialized expertise at potentially lower costs. When businesses outsource functions to specialized service providers, they often tap into a workforce that possesses a high level of expertise in certain areas, which might not be affordable or practical to maintain in-house.

Outsourcing can lead to significant savings because companies can access skilled labor in regions where wage levels are lower than in their home country. This can result in a better quality of service or production while reducing overall labor costs. For example, a company focused on core business operations can outsource IT services to a firm that specializes in that area, possibly achieving higher efficiency and effectiveness at a reduced price compared to hiring full-time employees with similar expertise.

The other options do not represent the primary advantage of outsourcing related to labor costs. While outsourcing might lead to staffing changes, it does not guarantee immediate hiring of new staff, nor does it inherently raise overall company costs. Additionally, outsourcing does not typically limit service availability; in fact, it can enhance service availability by leveraging different time zones and efficient resource management.