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Global outsourcing is purchasing inputs from overseas suppliers or producing a product overseas, so as to lower production costs and/or raise the quality of the product.

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What is global outsourcing?

Insource means the business gets the work done in house. Outsource means some function of the business gets done by third party / Outsourcing vendor. If the vendor is located anywhere on the globe other than the country where the actual business is located, then it is called Global outsourcing. For example: Cars made in Japan and Europe, items made in China, Software products delivered from India.


How does outsourcing affect employees conditions?

Outsourcing either challenges employees to do their best so they can keep their jobs, or it demoralizes them.