What is the likely outcome of the outsourcing support the United States receives from India?

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

The likely outcome of outsourcing support to India is a reduction of spending on systems costs. Outsourcing typically allows companies in the United States to take advantage of lower labor costs available in countries like India. By hiring skilled professionals in India who can perform the same tasks at a fraction of the cost, businesses can significantly reduce their operational expenses.

This approach not only lowers the direct salary costs associated with hiring local talent but can also lead to overall efficiency gains and better resource allocation. Additionally, companies can reinvest the savings into other areas of their business, potentially fostering innovation and growth.

In contrast, the other options suggest negative effects. The assumption of tremendous job losses in the IT sector is one perspective but does not account for the new opportunities created in different areas of the economy. A severe IT labor shortage in the United States is a concern that could arise if the workforce does not adapt, but outsourcing generally mitigates some of this pressure by providing accessible service and support from abroad. Lastly, a rise in systems costs contradicts the fundamental economic principle behind outsourcing, as the primary goal is to reduce costs.

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