outsourcing

out·sourc·ing

(out'sôr'sĭng, -sōr'-) pronunciation

n.
The procuring of services or products, such as the parts used in manufacturing a motor vehicle, from an outside supplier or manufacturer in order to cut costs.

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TechEncyclopedia:

outsourcing

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(1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management.

(2) Contracting with organizations outside your country for work that could otherwise be done by employees within your company. Contrast with insourcing.

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Barron's Finance & Investment Dictionary:

outsourcing

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contracting out to another manufacturer or supplier work that would otherwise be done by a company’s own employees.
Outsourcing by General Motors to avoid high wages paid to auto workers was a major issue in negiotiations with the United Auto Workers union in the 1990s.

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Gale Encyclopedia of Small Business:

Outsourcing

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Outsourcing occurs when a company purchases products or services from an outside supplier, rather than performing the same work within its own facilities, in order to cut costs. The decision to outsource is a major strategic one for most companies, since it involves weighing the potential cost savings against the consequences of a loss in control over the product or service. Some common examples of outsourcing include manufacturing of components, computer programming services, tax compliance and other accounting functions, training administration, customer service, transportation of products, benefits and compensation planning, payroll, and other human resource functions. A relatively new trend in outsourcing is employee leasing, in which specialized vendors recruit, hire, train, and pay their clients' employees, as well as arrange health care coverage and other benefits.

The growth in outsourcing in recent years is partly the result of a general shift in business philosophy. Prior to the mid-1980s, many companies sought to acquire other companies and diversify their business interests in order to reduce risk. As more companies discovered that there were limited advantages to running a large group of unrelated businesses, however, many began to divest subsidiaries and refocus their efforts on one or a few closely related areas of business. Companies tried to identify or develop a "core competence," a unique combination of experience and expertise that would provide a source of competitive advantage in a given industry. All aspects of the company's operations were aligned around the core competence, and any activities or functions that were not considered necessary to preserve it were then outsourced. Today, outsourcing is embraced by companies of all sizes and industry orientations. As analysts Tom Osmond commented in Employee Benefit News, "many companies have decided that transactional and administrative functions are neither core competencies nor value-added activities. In fact, some companies are putting themselves at risk as a result of using outdated technology and not complying with government regulations. Vendors, by focusing on administration as part of their business model, provide better service enforced by contracts and service-level agreements."

Successful outsourcing requires a strong understanding of the organization's capabilities and future direction. As William R. King explained in Information Systems Management, "[d]ecisions regarding outsourcing significant functions are among the most strategic that can be made by an organization, because they address the basic organizational choice of the functions for which internal expertise is developed and nurtured and those for which such expertise is purchased. These are basic decisions regarding organizational design." Outsourcing based only upon a comparison of costs can lead companies to miss opportunities to gain knowledge that might lead to the development of new products or technologies.

Outsourcing can be undertaken to varying degrees, ranging from total outsourcing to selective outsourcing. Total outsourcing may involve dismantling entire departments or divisions and transferring the employees, facilities, equipment, and complete responsibility for a product or function to an outside vendor. In contrast, selective outsourcing may target a single, time-consuming task within a department, such as preparing the payroll or manufacturing a minor component, that can be handled more efficiently by an outside specialist.

Vendors providing outsourcing services are generally grouped into two models: Business Process Outsourcing (BPO) and Application Service Provider (ASP). In the BPO model, major resources and assets are transferred from the company to the vendor. Under the ASP model, on the other hand, vendors concentrate on providing selected services for multiple clients. But as Osmond told Employee Benefit News, many variations exist within these two models. "Each vendor has a particular focus and/or point of entry to the market, particularly in the ASP space," Osmond stated. "There is also a wide range of pricing models and option. The good news is that there is a seemingly endless combination of service, pricing, and delivery, providing a solution for most situations. The bad news is that it can be difficult to compare vendors on an apples-to-apples basis."

Advantages of Outsourcing

Companies that decide to outsource do so for a number of reasons, all of which are based on realizing gains in business profitability and efficiency. Principal merits of outsourcing include the following:

Cost savings. Many businesses embrace outsourcing as a way to realize cost savings or better cost control over the outsourced function. Companies usually outsource to a vendor that specializes in a given function and performs that function more efficiently than the company could, simply by virtue of transaction volume.

Staffing levels. Another common reason for outsourcing is to achieve headcount reductions or minimize the fluctuations in staffing that may occur due to changes in demand for a product or service. Companies also outsource in order to reduce the workload on their employees (freeing them to take on additional moneymaking projects for the business), or to provide more development opportunities for their employees by freeing them from tedious tasks.

Focus. Some companies outsource in order to eliminate distractions and force themselves to concentrate on their core competencies. This can be a particularly attractive benefit for start-up firms. Outsourcing can free the entrepreneur from tedious and time-consuming tasks, such as payroll, so that he or she can concentrate on the marketing and sales activities that are most essential to the firm's long-term growth and prosperity. "What an outsourcing partner really sells is focus," wrote Adam Katz-Stone in Baltimore Business Journal. "In accounting for instance, that is something that typically is seen as necessary but not essential, not the core of the business. So you bring in an outsourcing partner and then you don't have to think about that any more. You can focus your energies on sales, marketing, all the other things that matter more."

Morale. This is an often-overlooked but still notable benefit that can sometimes be gained by initiating an outsourcing relationship. "Often a business's lack of internal expertise or dedication to non-core tasks results in poor attitudes and ultimately poor performance," wrote Kevin Grauman in CPA Journal. "This can lead to overlap and duplication of internal efforts. An effectively designed and ongoing communication process emanating from one or more outsourcers can greatly reduce or eliminate these duplications."

Flexibility. Still others outsource to achieve greater financial flexibility, since the sale of assets that formerly supported an outsourced function can improve a company's cash flow. A possible pitfall in this reasoning is that many vendors demand long-term contracts, which may reduce flexibility.

Knowledge. Some experts tout outsourcing of computer programming and other information technology functions as a way to gain access to new technology and outside expertise. This may be of particular benefit to small businesses, which may not be able to afford to hire computer experts or develop the in-house expertise to maintain high-level technology. When such tasks are outsourced, the small business gains access to new technology that can help it compete with larger companies.

Accountability. Outsourcing is predicated on the understanding—shared by business and vendor alike—that such arrangements require quality service in exchange for payment. "Paying for a business service creates the expectation of performance," stated Grauman. "Outsourcers are well aware that this accountability is both practical and legal, with fiscal implications. The same cannot be said for internally provided functions."

Disadvantages of Outsourcing

Some of the major potential disadvantages to outsourcing include poor quality control, decreased company loyalty, a lengthy bid process, and a loss of strategic alignment. All of these concerns can be addressed and minimized, however, by companies who go about the outsourcing process in an informed and deliberate fashion. Info World's Maggie Biggs counsels businesses to define "exactly what business processes and/or functions it makes sense to maintain via a service relationship. Unless you have a lot of resources to expend, it may make sense to prioritize outsourcing projects based on the number of benefits you expect to gain from the arrangement." There may also be inherent advantages of maintaining certain functions internally. For example, company employees may have a better understanding of the industry, and their vested interests may mean they are more likely to make decisions in accordance with the company's goals. Indeed, most analysts discourage companies from outsourcing core functions that directly affect the products or services that the business offers.

Steps in Successful Outsourcing

Once a company has made the decision to outsource, there are still a number of factors it must consider in making a successful transition and forming a partner relationship with the vendor. First, the company should determine what sort of outsourcing relationship will best meet its needs. "Decide what's important," urged the Journal of Accountancy. "If a function is not strategic to your business—for instance, payroll services or health insurance needs in a recruiting agency with only ten employees—consider outsourcing it to an expert provider." Some businesses share strategic decision-making with their vendors, while others only outsource on a limited, as needed basis.

As Ethel Scully noted in National Underwriter, the company needs to obtain the support of key personnel during this time. Many companies encounter resistance from employees who feel that their jobs are threatened by outsourcing. Scully suggested forming a team consisting of an outsourcing expert, representatives from senior management and human resources, and the managers of all affected areas of the company to help address employee concerns about the decision.

Once your business has decided which functions to outsource, it should initiate a search process that utilizes referrals from other companies and service-provider directories. You can then begin contacting potential vendors and ask specific questions about the services they provide and their abilities to meet your company's unique and specific needs. Ideally, the vendor you select will have experience in handling similar business and will be able to give all of its clients' needs the priority they deserve. "Consider the service company's knowledge of the entirety of your business, its willingness to customize service, and its compatibility with your firm's business culture, as well as the long-run cost of its services and its financial strength," said service provider Carl Schwenker in Money. During this period, you should also reexamine your own company culture and business needs to make sure that the outsourcing arrangement under consideration is a good fit. Many outsourcing experts counsel businesses to select vendors that can effectively integrate all their outsourced business functions so that they do not have to find individual vendors for each function.

Finally, you should select a vendor you trust in order to develop a mutually beneficial partner relationship. It is important to develop tangible measures of job performance before entering into an agreement, as well as financial incentives to encourage the vendor to meet deadlines and control costs. The contract should clearly define responsibilities and performance criteria, outline confidentiality rules and ownership rights to new ideas or technology. It should also include a means of severing the relationship if the service does not meet your expectations. Since the vendor is likely to have more experience in preparing outsourcing agreements than a small client company, it may also be helpful to consult with an attorney during contract negotiations.

Outsourcing

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A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.

Investopedia Says:
Outsourcing is an effective cost-saving strategy when used properly. It is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce the good internally. An example of a manufacturing company outsourcing would be Dell buying some of its computer components from another manufacturer in order to save on production costs. Alternatively, businesses may decide to outsource book-keeping duties to independent accounting firms, as it may be cheaper than retaining an in-house accountant.

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Wikipedia on Answers.com:

Outsourcing

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This article has multiple issues. Please help improve it or discuss these issues on the talk page.

It needs additional citations for verification. Tagged since October 2009.
It may not represent a worldwide view of the subject. Tagged since November 2008.
Its neutrality is disputed. Tagged since May 2010.

Outsourcing is the process of contracting a business function to someone else.^[1] It is sometimes confused with offshoring, though a function may be outsourced without offshoring or vice versa. The opposite of outsourcing is called vertical integration or insourcing.

Overview

The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider.^[2] In this sense, two organizations may enter into a contractual agreement involving an exchange of services and payments.The concept of outsourcing thereby helps the firms to perform well in their core competencies and thus mitigating rise of skill or expertise shortage in the areas where they want to outsource.

Of recent concern is the ability of businesses to outsource to suppliers outside the nation, sometimes referred to as offshoring or offshore outsourcing. In addition, several related terms have emerged to grasp various aspects of the complex relationship between economic organizations or networks, such as nearshoring, multisourcing^[3]^[4] and strategic outsourcing.^[5]

One of the biggest changes of recent years has come from the growth of groups of people using online technologies to use outsourcing as a way to build a viable service delivery business that can be run from virtually anywhere in the world. The preferential contract rates that can be obtained by temporarily employing experts in specific areas to deliver elements of a project purely online means that there is a growing number of small businesses that operate entirely online using offshore outsourced contractors to deliver the work before repackaging it to deliver to the client. One common area where this business model thrives is in provided website creating, analysis and marketing services. All elements can be done remotely and delivered digitally and service providers can leverage the scale and economy of outsourcing to deliver high value services at vastly reduced end customer prices.

Reasons

This section is in a list format that may be better presented using prose. You can help by converting this section to prose, if appropriate. Editing help is available. (October 2010)

Organizations that outsource are seeking to realize benefits or address the following issues:^[6]^[7]^[8]^[9]

Cost savings — The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, and cost re-structuring. Access to lower cost economies through offshoring called "labor arbitrage" generated by the wage gap between industrialized and developing nations.^[10]
Focus on Core Business — Resources (for example investment, people, infrastructure) are focused on developing the core business. For example often organizations outsource their IT support to specialised IT services companies.
Cost restructuring — Operating leverage is a measure that compares fixed costs to variable costs. Outsourcing changes the balance of this ratio by offering a move from fixed to variable cost and also by making variable costs more predictable.
Improve quality — Achieve a steep change in quality through contracting out the service with a new service level agreement.
Knowledge — Access to intellectual property and wider experience and knowledge.^[11]
Contract — Services will be provided to a legally binding contract with financial penalties and legal redress. This is not the case with internal services.^[12]
Operational expertise — Access to operational best practice that would be too difficult or time consuming to develop in-house.
Access to talent — Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering.^[13]^[14]
Capacity management — An improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier.
Catalyst for change — An organization can use an outsourcing agreement as a catalyst for major step change that can not be achieved alone. The outsourcer becomes a Change agent in the process.
Enhance capacity for innovation — Companies increasingly use external knowledge service providers to supplement limited in-house capacity for product innovation.^[14]^[15]
Reduce time to market — The acceleration of the development or production of a product through the additional capability brought by the supplier.^[16]
Commodification — The trend of standardizing business processes, IT Services, and application services which enable to buy at the right price, allows businesses access to services which were only available to large corporations.
Risk management — An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation.^[17]
Venture Capital — Some countries match government funds venture capital with private venture capital for start-ups that start businesses in their country.^[18]
Tax Benefit — Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country.
Scalability — The outsourced company will usually be prepared to manage a temporary or permanent increase or decrease in production.
Creating leisure time — Individuals may wish to outsource their work in order to optimise their work-leisure balance.^[19]
Liability — Organizations choose to transfer liabilities inherent to specific business processes or services that are outside of their core competencies.
Revenue — The classic outsourcing "mega-deal" tended to be the sale of a function and its associated capital [equipment, people, etc.] to an external vendor. The function was then rented back from the vendor over a series of years. The result was a short-run windfall.

Implications

Management, the corporation and consumers

Management processes

Greater physical distance between higher management and the production floor employees often requires a change in management methodologies, as inspection and feedback may not be as direct and frequent as in internal processes. This often requires the assimilation of new communication methods such as Voice over ip, Instant messaging, and Issue Tracking Systems, new Time management methods such as Time Tracking Software, and new cost and schedule assessment tools such as Cost Estimation Software.

Quality of service

Quality of service is best measured through customer satisfaction questionnaires which are designed to capture an unbiased view. ^[20]

Language skills

In the area of call centers end-user-experience is deemed to be of lower quality when a service is outsourced. This is exacerbated when outsourcing is combined with offshoring to regions where the first language and culture are different.^[21] The questionable quality is particularly evident when call centers that service the public are outsourced and offshored.^{[citation needed]}

Call center agents may speak a variety of the language with different linguistic features such as accents, word use and phraseology, which may make them more difficult to understand for the clients. The visual clues that are present in face-to-face encounters are missing from the call center interactions and this also may lead to misunderstandings and difficulties.^[22]

Security

Before outsourcing an organization is responsible for the actions of all their staff and liable for their actions. When these same people are transferred to an outsourcer they may not change desk but their legal status has changed. They are no longer directly employed or responsible to the organization. This causes legal, security and compliance issues that need to be addressed through the contract between the client and the suppliers. This is one of the most complex areas of outsourcing and requires a specialist third party adviser.^{[citation needed]}

Fraud is a specific security issue that is criminal activity whether it is by employees or the supplier staff. However, it can be disputed that the fraud is more likely when outsourcers are involved, for example credit card theft when there is scope for fraud by credit card cloning. In April 2005, a high-profile case involving the theft of $350,000 from four Citibank customers occurred when call center workers acquired the passwords to customer accounts and transferred the money to their own accounts opened under fictitious names. Citibank did not find out about the problem until the American customers noticed discrepancies with their accounts and notified the bank.^[23]

Qualifications of outsourcers

In the engineering discipline there has been a debate about the number of engineers being produced by the major economies of the United States, India and China. The argument centers around the definition of an engineering graduate and also disputed numbers. The closest comparable numbers of annual graduates of four-year degrees are United States (137,437) India (112,000) and China (351,537).^[24]^[25]

Diversification

The early trend in outsourcing was manifest in a financial construct where a function's associated capital and personnel were sold to a vendor and then rented back over a series of years. Early benefits were a boost in expertise and efficiency as outsource vendors had more focus and capability in their specialization. As time progressed, the year 0 benefit was off the books, customer needs evolved and contracts generally aged poorly. Rigid contracts hampered the ability of customers to respond to emerging business drivers, and simultaneously tied the hands of the vendor's team who was focused on increased efficiencies for static problems. The result tended to be additional "project" contracts for incremental changes in a monopoly environment. Many deals became contentious, and many customers have become very uncomfortable surrendering so much power to a single vendor. As the contract aged, it became increasingly difficult to even negotiate with vendors with confidence, because the customer began to lack any real knowledge of the cost structure of the function, or the competitive situation of the vendor.

Industry leaders turned to each other, trade journals and management consultants to try to regain control of the situation, and the next answer that grabbed hold of the industry was labor cost arbitration; leveraging cheap, offshore resources to replace or pressure increasingly expensive legacy outsource vendors. Pressure led incumbent vendors to move resources offshore, or to be replaced wholesale. As this renegotiation was under way, many customers seized the opportunity to restructure to gain more control, transparency and negotiating power. The end result has been fragmentation of outsource contracts and a decline in mega-deals. Many companies are now relying on several vendors who each offer specialization and / or lowest cost.

"Insourcing"

As mentioned above, outsourcing has gone through many iterations and reinventions. Some outsourcing deals have been partially or fully reversed citing an inability to execute strategy, lost transparency & control, onerous contractual models, a lack of competition, recurring costs, hidden costs, etc... Many companies are now moving to more tailored models where along with outsource vendor diversification, key parts of what was previously outsourced has been "insourced". "Insourcing" has been identified as a means to ensure control, compliance and to gain competitive differentiation through vertical integration or the development of shared services [commonly called a 'center of excellence']. "Insourcing" at some level also tends to be leveraged to enable organizations to undergo significant transformational change.^{[citation needed]}

Standpoint of labor

From the standpoint of labor, outsourcing may represent a new threat, contributing to worker insecurity, and reflective of the general process of globalization.^[26]

On June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the United States to increase its manufacturing base employment to 20% of the workforce commenting that the U.S. has outsourced too much and can no longer rely on consumer spending to drive demand.^[27]

Standpoint of government

Western governments may attempt to compensate workers affected by outsourcing through various forms of legislation. In Europe, the Acquired Rights Directive attempts to address the issue. The Directive is implemented differently in different nations. In the United States, the Trade Adjustment Assistance Act is meant to provide compensation for workers directly affected by international trade agreements. Whether or not these policies provide the security and fair compensation they promise is debatable.

By country

United States

"Outsourcing" became a popular political issue in the United States, having been confounded with offshoring, during the 2004 U.S. presidential election. The political debate centered on outsourcing's consequences for the domestic U.S. workforce. Democratic U.S. presidential candidate John Kerry criticized U.S. firms that outsource jobs abroad or that incorporate overseas in tax havens to avoid paying their "fair share" of U.S. taxes during his 2004 campaign, calling such firms "Benedict Arnold corporations".^[28]

Criticism of outsourcing, from the perspective of U.S. citizens, generally revolves around the costs associated with transferring control of the labor process to an external entity in another country. A Zogby International poll conducted in August 2004 found that 71% of American voters believed that “outsourcing jobs overseas” hurt the economy while another 62% believed that the U.S. government should impose some legislative action against companies that transfer domestic jobs overseas, possibly in the form of increased taxes on companies that outsource.^[29]

Union busting is one possible cause of outsourcing. As unions are disadvantaged by union busting legislation, workers lose bargaining power and it becomes easier for corporations to fire them and ship their job overseas.^[30]

Another given^{[by whom?]} rationale is the high corporate income tax rate in the U.S. relative to other OECD nations,^[31]^[32]^[33] and the practice of taxing revenues earned outside of U.S. jurisdiction, a very uncommon practice. However, outsourcing is not solely a U.S. phenomenon as corporations in various nations with low tax rates outsource as well, which means that high taxation can only partially, if at all, explain US outsourcing. For example, the amount of corporate outsourcing in 1950 would be considerably lower than today, yet the tax rate was actually higher in 1950.^[34]

It is argued^{[by whom?]} that lowering the corporate income tax and ending the double-taxation of foreign-derived revenue (taxed once in the nation where the revenue was raised, and once from the U.S.) will alleviate corporate outsourcing and make the U.S. more attractive to foreign companies. However, while the US has a high official tax rate, the actual taxes paid by US corporations may be considerably lower due to the use of tax loopholes, tax havens, and attempts to "game the system".^[35] Rather than avoiding taxes, outsourcing may be mostly driven by the desire to lower labor costs (see standpoint of labor above). Sarbanes-Oxley has also been cited as a factor for corporate flight from U.S. jurisdiction.

European Union

Where outsourcing involves the transfer of an undertaking, it is subject to Council Directive 77/187 of 14 February 1977, on the approximation of the laws of the Member States relating to the safeguarding of employees’ rights in the event of transfers of undertakings, businesses or parts of businesses (as amended by Directive 98/50/EC of 29 June 1998; consolidated in Directive 2001/23 of 12 March 2001).^[36] Under that directive, rights acquired by employees with the former employer are to be safeguarded when they, together with the undertaking in which they are employed, are transferred to another employer, i.e. the contractor. An example of a case involving such contracting-out was the decision of the European Court of Justice in Christel Schmidt v. Spar- und Leihkasse der früheren Ämter Bordesholm, Kiel und Cronshagen, Case C-392/92 [1994]. Although subsequent decisions have disputed whether a particular contracting-out exercise constituted a transfer of an undertaking (see, for example, Ayse Süzen v. Zehnacker Gebäudereinigung GmbH Krankenhausservice, Case C-13/95 [1997]), in principle, employees of an enterprise outsourcing part of its activities in which they are employed may benefit from the protection offered by the directive.

Industry Publications

Outsource Magazine - Wikipedia Page - Official Website

References

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^ Overby, S (2007) ABC: An Introduction to Outsourcing. CIO.com.
^ (Q4 2006)Mandatory Multisourcing Discipline Business Trends Quarterly
^ (2006) Mandatory Multisourcing Discipline
^ see Holcomb & Hitt, 2007
^ Gareiss, R (2002, 18 Nov) Analyzing The Outsourcers. Information Week.
^ Drezner, D.W. (2004) The Outsourcing Bogeyman www.foreignaffairs.org
^ Engardio, P. (2006) Outsourcing: Job Killer or Innovation Boost? Business Week
^ Justin Chakma, Jeff L Calcagno, Ali Behbahani and Shawn Mojtahedian. Is it Virtuous to be Virtual? The VC Viewpoint. 27, Number 10, October 2009, subscription required. Center on Budget and Policy Priorities. doi:10.1038/nbt1009-886. http://www.nature.com/nbt/journal/v27/n10/full/nbt1009-886.html. Retrieved 2011-03-09.
^ Engardio, P. & Arndt, M. & Foust, D. (2006) The Future Of Outsourcing Business Week
^ Engardio, P. & Kripalani, M. (2006) The Rise Of India Business Week
^ Rothman, J. (2003) 11 Steps to Successful Outsourcing: A Contrarian's View www.computerworld.com
^ Manning et al. (2008) A Dynamic Perspective on Next-Generation Offshoring: The Global Sourcing of Science and Engineering Talent Academy of Management Perspectives 22.3: 35-54.
^ ^a ^b Lewin, A.Y. & Couto, V. (March 2007). "2006 Survey Report". Offshoring Research Network. https://offshoring.fuqua.duke.edu/orn_report.pdf. Retrieved 2011-03-09.
^ Couto et al. Offshoring 2.0: Contracting Knowledge and Innovation to Expand Global Capabilities Offshoring Research Network 2007 Service Provider Report
^ Nadeem, S (2009) “The Uses and Abuses of Time: Globalization and Time Arbitrage in India’s Outsourcing Industries”. Global Networks.
^ Roehrig, P. (2006) Bet On Governance To Manage Outsourcing Risk. Business Trends Quarterly.
^ "Russia finally gets serious about venture capital". VentureBeat. 2007-06-01. http://venturebeat.com/2007/06/01/russia-finally-gets-serious-about-venture-capital/. Retrieved 2010-03-15.
^ Gamerman, Ellen (2007-06-02). "Outsourcing Your Life". Wall Street Journal. http://online.wsj.com/article/SB118073815238422013.html. Retrieved 2010-07-23.
^ Maddock, B. & Warren, C. & Worsley A. (2005) Survey of canteens and food services in Victorian schools.
^ Nadeem, S (2009) Macaulay’s (Cyber) Children: The Cultural Politics of Outsourcing in India. Cultural Sociology.
^ Alster, N (2005) Customer Disservice. www.CFO.com.
^ Ribeiro, J (2005) Indian call center workers charged with Citibank fraud. www.infoworld.com
^ Wadhwa, V (2005) About That Engineering Gap. www.businessweek.com
^ Gereffi, G. & Wadhwa, V. Framing the Engineering Outsourcing Debate: Placing the United States on a Level Playing Field with China and India. Duke University.
^ Krugman, Paul (2006). "Feeling No Pain." New York Times, March 6, 2006.
^ Bailey, David and Soyoung Kim (June 26, 2009).GE's Immelt says U.S. economy needs industrial renewal.UK Guardian.. Retrieved on June 28, 2009.
^ Croghan, Lore (February 23, 2004). "Kerry Targets N.Y. Firms: 'Benedict Arnold' move sending jobs overseas". Daily News. http://www.nydailynews.com/archives/money/2004/02/23/2004-02-23_kerry_targets_n_y__firms___b.html. Retrieved March 7, 2011.
^ Zogby International survey results online at zogby.com
^ "Tell Xerox to Stop Unionbusting and Shipping Jobs Overseas". American Rights at Work. http://act.americanrightsatwork.org/p/dia/action/public/?action_KEY=576. Retrieved 2011-03-09.
^ "Veronique de Rugy on Corporate Flight & Taxes on NRO Financial". Nationalreview.com. 2002-04-18. http://www.nationalreview.com/nrof_comment/comment-rugy041802.asp. Retrieved 2010-03-15.
^ "U.S. Lagging Behind OECD Corporate Tax Trends". The Tax Foundation. 2006-05-05. http://www.taxfoundation.org/news/show/1466.html. Retrieved 2010-03-15.
^ John Tamny. "John Tamny on Hillary Clinton Economics on NRO Financial". Article.nationalreview.com. http://article.nationalreview.com/?q=ODZjNjI4ZTNjZmNiOGMxYjAwOTg1ZGI0NmFiOWFjZjI=. Retrieved 2010-03-15.
^ Joel Friedman (October 24, 2003). "The Decline of Corporate Income Tax Revenues" (pdf). Center on Budget and Policy Priorities. http://www.cbpp.org/files/10-16-03tax.pdf. Retrieved 2011-03-09.
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^ "Council Directive 2001/23/EC". EUR-Lex. http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexapi!prod!CELEXnumdoc&lg=EN&numdoc=32001L0023&model=guichett. Retrieved 2011-03-09.

External links

Look up outsourcing in Wiktionary, the free dictionary.

Job migration at the Open Directory Project

v d e International trade

Terminology	Absolute advantage Balance of payments Balance of trade Capital account Comparative advantage Current account Export-oriented industrialization Fair trade Foreign exchange reserves Globalization Import substitution industrialization Net capital outflow Outsourcing Trade justice Trading nation

Organizations and policies	International Monetary Fund International Trade Centre United Nations Conference on Trade and Development World Bank Group World Trade Organization Economic integration Free trade zone Trade barrier Trade bloc Trade pact

Schools of thought	Economic nationalism Free trade Mercantilism Protectionism

Customs unions	ACU ASEAN CACM CAN CARICOM CEMAC CUBKR EAC EAEC EU GCC Mercosur SACU WAEMU

Trading partners	Argentina Canada China European Union India Japan Pakistan United States

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outsourcing

out·sourc·ing

outsourcing

outsourcing

outsourcing

Outsourcing

Outsourcing

Outsourcing

Overview

Reasons

Implications

Management, the corporation and consumers

Management processes

Quality of service

Language skills

Security

Qualifications of outsourcers

Diversification

"Insourcing"

Standpoint of labor

Standpoint of government

By country

United States

European Union

Industry Publications

See also

References

External links