What is a potential outcome of quality risks in outsourcing?

When considering quality risks in outsourcing, one significant potential outcome is the production of defective products. Outsourcing often involves transferring key business processes or services to external vendors. If the chosen vendor does not adhere to the necessary quality standards, lacks adequate training, or has insufficient quality control measures in place, the result can be defective products. This could lead to increased costs related to returns, rework, or damage to the company's reputation. Ensuring that the outsourced partner meets quality expectations is crucial to mitigate such risks and deliver products that meet customer standards.

The other outcomes listed focus on positive scenarios. While stronger customer loyalty, enhanced service agreements, and improved competitive advantage are all desirable outcomes, they are generally contingent on effective management of quality risks rather than direct consequences of those risks. In contrast, defective products represent a tangible, negative outcome that can arise when quality is compromised in an outsourcing arrangement.