GLOBAL OUTSOURCING

 Global outsourcing is a term used to describe practice of sourcing from the global market for goods and services across geopolitical boundaries.  Global sourcing often aims to exploit global efficiencies in the delivery of a product or service.  These efficiencies include low cost skilled labor, low cost raw material and other economic factors like tax breaks and low trade tariffs

Common examples of globally- sourced products or services include-  labor-intensive manufactured products produced using low-cost Chinese labor  call centers staffed with low-cost English speaking workers in the Philippines and India  and IT work performed by low-cost programmers in India and Eastern Europe

Benefits:  Cost savings  Focus on Core Business  Cost restructuring  Improve quality  Knowledge  Contract  Operational expertise  Access to talent  Enhance capacity for innovation  Risk management