What is a direct risk of neglecting Change Management during an offshoring transition?

• A. Increased resistance and productivity losses.
• B. Improved cross-cultural collaboration.
• C. Immediate cost savings.
• D. Instant regulatory approval.

Answer: (A)

Neglecting Change Management during an offshoring transition undermines how people adopt new processes, tools, and ways of working across borders. When there’s no clear communication, visible sponsorship, or adequate training, resistance grows, employees become uncertain about their roles, and engagement drops. That resistance translates into slower adoption, more mistakes, and rework, which drives productivity losses and delays in realizing the anticipated benefits of the move.

Other outcomes like immediate cost savings or instant regulatory approvals aren’t direct results of Change Management gaps. Costs can be affected in many ways, but without proper change efforts you’re more likely to see inefficiencies than guaranteed savings. Regulatory approvals depend on governance and compliance processes, not on how change is managed. And while effective Change Management can enhance cross-cultural collaboration, neglect typically hinders collaboration rather than improves it, since people may not align on expectations or feel supported during the transition.