Document Type

Closed Project

Publication Date

Fall 2003


Dundar Kocaoglu

Course Title

Engineering and Technology Management

Course Number

EMGT 520/620


Overseas outsourcing and off-shoring has become a trend for many US based corporations. In the past year, there has been an increase of about 10% in outsourcing. Much of the outsourcing currently is directed towards Indian companies; however, other countries including China, Philippines, Mexico and Ireland are seeing an increase in US business. Some of the key driving forces for this trend are cost, the ability to acquire specialized skills, and to redistribute employee focus. While some companies manage to gain those benefits and accomplish the goals behind their decision to outsource, there are downfalls associated with outsourcing, including communication barriers and controlling intellectual property as the primary concerns. Challenges associated with outsourcing must also be managed in order to obtain the projected benefits. Companies must also be aware of the strategic management challenges related to implementing an overseas outsourcing contract. Though it seems that there is currently no correlation between US unemployment and outsourcing, this possibility exists if US corporations and government are not reacting to this trend by improving educational systems and improving value-add capabilities to stay ahead of this growing trend.


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