Define offshore outsourcing and explain its pros and cons

Offshore outsourcing is the purchase of goods and services from foreign sources outside a firm rather than providing them within the company. Some pros of offshore outsourcing are that less strategic tasks can be outsourced globally so that companies can focus on areas in which they can excel and grow, it allows companies to create efficiency that let them hire more workers, and that the consumers benefit from lower prices generated by effective use of global resources and developing nations grow, thus fueling global economic growth. Cons of offshore outsourcing are that jobs are permanently lost and wages fail due to low cost competition offshore, it reduces product quality which can damage a company’s reputation, and that communication among company members, suppliers, and customers are not great.