Offshoring Limitations

Abstract

Using offshore locations to provide high quality products and services at a lower cost makes good economic sense. The current global environment focuses on reducing costs and having a lean organizational structure. There are, however, numerous repercussions being felt by American IT workers due to an increase in offshoring activities. This paper focuses on the impact of offshoring and the weighing of costs and benefits as a result of offshoring activities. Minimizing costs is often cited as the most important reason for American jobs to be outsourced, but a major factor behind offshoring is the intense global competition among nations in a period of slow economic growth. This competition forces global firms to keep a constant watch on costs to achieve a higher degree of efficiency.