What is International Outsourcing?
“International outsourcing” can take many forms. • Exportation, either directly or by subcontracting of particular tasks or functions to a foreign enterprise for performance offshore (the “out-tasking” model), for use in the customer’s home country after completion. • Partial exportation of a task, such as the accelerated design through “7 X 24” design operations using two interdependent teams in different time zones (another “out-tasking” model). • Reliance upon a foreign external enterprise to support a foreign subsidiary of the U.S. customer (the “foreign local subsidiary” model). This is typically a part of “global outsourcing” (across territorial boundaries). But could equally be done country-by-country and managed by the headquarters staff, in-house, in the home country or regional centers. (The global multilateral outsourcing model challenges the later model.) • Establishment of a jointly owned subsidiary for the provision of shared services to affiliates (the “shared services”
