Outsourcing: Pros and cons

Overseas outsourcing of jobs is far more complicated than is generally understood. Pressures to outsource range from better-serving overseas markets to increasing the competitiveness of American business. Outsourcing—domestic and international—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 need to realize that foreign companies outsource more business services to the United States than American firms send overseas.