Define offshore outsourcing and explain its pros and cons

 

As learned, the key notion of offshore outsourcing is often based on the notion or premise that the firm would be sending a number of its core as well as mostly like the non core jobs to a number of other countries around the world.  In doing that, this shift in jobs is often based on a number of cost cutting and cost saving measures and at most times, this is done when the cost of labor in some developing or a third world country is much lower than the cost of labor here in the United States.  So based on this, a firm in the United States might as such engage in such offshore outsourcing by sending jobs to a developing country like that of China.  So the advantage is that the firm would end up saving some money due to this move, but the disadvantage is that the firm might not be in full or comprehensive control over the different types of quality control aspects of the job in that other country. So as such, some of that direct and indirect control gets to be lost when offshore outsourcing starts to take place.