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Abstract
It is believed that world outsourcing will increase by 8.1% this year. However, Organizations that engage in outsourcing activities tend to ignore the negative effects of outsourcing. This paper is a literature review, focusing more on the negative effects of outsourcing The method of research is based on library books, journals databases and web based research. There are three main arguments discussed in this paper relating to the negative impacts of outsourcing. They are to leakage of information, rise in hidden costs and losing management control.

1.0 Introduction
A fundamental shift is occurring in the business world. In modern business environment outsourcing has become very popular. Heywood (2001) defined outsourcing as “the transferring of an internal business function or functions, plus any associated assets, to an external supplier or service provider who offers a defined service for a specified period of time at an agreed but probably qualified price.”......

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Approximate Word Count: 2419
Approximate Pages: 10 (250 words per double-spaced page)

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