Organizations that outsource to other firms also lay off portions of their own staff as part of outsourcing. People lose their jobs as their work has been outsourced to a different firm at lower wages. The employees become bitter and nonproductive after such layoffs. Identify the issue associated with outsourcing that affects an organization’s positives in such cases.

a. Payroll issues
b. Employee morale
c. Legal issues
d. Security breach

b. Employee morale
The use of outsourcing has always been controversial because the end result is that some people lose their jobs while others gain jobs, often at far lower wages. It often affects the morale of employees who may become bitter and nonproductive.