The idea of outsourcing requires context in order to arrive at an opinion on whether or not it is positive or negative.

Outsourcing to companies is only likely to be engaged if there is a reasonable expectation that doing so is advantageous to the company who is seeking to outsource. Companies usually recognize when another firm has competitive advantages to better fulfill a certain requirement, hence they demand their service for better business performance.

There is also qualitative advantages that can be derived from outsourcing such as those obtained when capital flows to socio-economically challenged areas. The foreign investment has the potential to build upon raising living standards and creating jobs, whereas the negativity associated with outsourcing typically stems from the idea that firms have a responsibility to invest in their own backyards and that doing otherwise can take away from the economic performance of their home country. Outsourcing may also pose moral dilemmas where outsourcing providers fail to maintain adequate working standards.

When the concept of outsourcing is understood, it can provide positive benefits for business performance by seeking out efficient opportunities when companies weigh their decision to outsource on both quantitative and qualitative grounds.

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