There is no reason to assume that offshoring has reduced labor costs. In fact, there may be increased costs or lower quality (Yusuf & O'Connell, 2014 p 478). Because there's no way to assume that there's a benefit when you offshore, that labor will be cheaper, you could potentially pay them a higher wage. An increase in prices or lack of price difference has a negative effect on the economy. Another negative effect of offshoring on the economy concerns economic conditions at home and abroad. “Overall economic conditions at home or abroad also pose a major threat to business operations. 33% of service providers considered a potential risk to their operational practices and something that impacts their business compared to last year and around 30% of companies faced this risk factor. »(Ahemed, Capretez, Sandhu & Raza, 2014 p.