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Outsourcing: Pros and Cons
Overseas outsourcing of jobs is far more complicated than is generally understood. Pressures to outsource range from serving overseas markets better to increasing the competitiveness of American business. Both domestic and international outsourcing responds to management's desire to focus the firm's in-house activities on its core competence. A negative side to outsourcing results from companies doing so simply because "everybody is doing it." They may be surprised by accompanying factors such as unexpected costs and complications, as well. Governmental policymakers must realize that foreign companies outsource more business services to the United States than American firms send overseas.