Which of the following is a key issue associated with outsourcing and offshoring?

Time zone differences represent a key issue associated with outsourcing and offshoring as they can significantly impact communication and collaboration between teams located in different geographical regions. When teams work across various time zones, there can be delays in response times, coordination challenges, and difficulties in scheduling meetings, which may hinder effective project management and operational efficiency.

The consequences of time zone differences can lead to misaligned schedules and reduced productivity. Organizations must figure out ways to manage these differences, such as establishing overlapping working hours or utilizing asynchronous communication strategies.

Although transportation costs can be a factor in outsourcing logistics, they are typically less significant with digital services or when the product does not require physical shipping. Increased profit margins can be a potential benefit of outsourcing rather than an associated issue. Regulatory compliance is undoubtedly important, but it often pertains to the legal and operational aspects within each jurisdiction rather than an inherent challenge of the outsourcing model itself.