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Vol XVIII: Ch.5: Project Solutions: Managing the Remote Pieces of Offshoring and Onshoring
From the Book: The Refractive Thinker® Vol XVIII: Project Management: Strategies to Enhance Workflow and Productivity
SummaryOffshoring remains one of the most debated topics of economic policy since 1986. Employment debates focus on the drivers of offshoring and the overreaching negative effects of offshoring on the home countries of multinational enterprises. Critics of offshoring see offshoring as a potential threat to the economies of advanced countries, and a threat to long-term competitiveness and innovative capacities of advanced countries. Critics also blame offshoring for the weakening of the manufacturing industry, erosion of domestic capabilities of advanced countries, as well as job losses.
In contrast, proponents of offshoring, see offshoring as a source of competitive advantage, as a useful tool to achieve productivity and cost-savings, and as a useful tool for reorganization. Current events remain unclear whether unbiased evidence exists to support the view that offshoring is a threat to the economies of advanced countries and a threat to long-term competitiveness and innovative capacities of advanced countries. Similarly, arguments remain unclear whether there is unbiased evidence to support the pro-offshoring view that offshoring practices should be continued for reasons discussed here. These raging debates in the media and elsewhere continue to influence research on the topic of offshoring in relation to its impacts and drivers. However, mixed results reported in this study increase difficulty for policy makers to determine which way to go: advocate for offshoring or dismiss altogether. The author builds on the existing body of knowledge and provides a perspective that helps clear confusion about the drivers of offshoring by taking the business and psychology perspectives. The book further includes review of the results of studies on the effects of offshoring to highlight keynote results in relation to the effects of offshoring. The aim is to dispel any myth not supported by evidence regarding the potential negative effects of offshoring.