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Issues on Future of Offshoring and Global Sourcing
Michela Pellicelli
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DOI:10.17265/1537-1514/2014.07.005
Michela Pellicelli, assistant professor, Ph.D. in Business Administration and Management, Department of Economics and Management, University of Pavia, Pavia, Italy.
In recent years, outsourcing strategies have undergone a profound evolution, moving from being a pure make or buy tactical decision to becoming part of strategy. By tradition, firms originally considered outsourcing as a solution to short-term problems, such as a sudden or unexpected increase in demand, an interruption in plant or equipment functioning, or the launch of a new product. Today firms consider outsourcing as a network of stable agreements with specialized suppliers as part of a long-term strategic perspective. The tendency is to attain offshoring and global sourcing. However, researchers are unanimous in recognizing that there are many obstacles to adopting a long-term outsourcing and offshoring strategies. They have also been heavily criticized by governments (the U.S. and Europe in particular) as recognized as a cause of further weakening national economies. Recently, some studies and research found that the large multinational corporations, mainly in the United States, are moving their production back or considering it such a strategic decision in the near future. So what is the future for offshoring and global sourcing?
outsourcing, offshoring, global sourcing, outsourcing strategies
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