Outsourcing in a nutshell:

Okay, maybe that was a bit of a dramatization. But in all seriousness the decision to outsource a sector of a company overseas is fairly significant when discussing managerial accounting. The over-riding question is: Is it worth it? When most of us think of outsourcing overseas, some ideas that come to mind are: cutting costs, and lowering wages. But maybe the question isn’t “is it worth it to outsource?”; but “HOW can a company make it worthwile to outsource?” Instead of viewing outsourcing as a means through which a company is divided and essentially split up, perhaps it’s time to see how outsourcing can be harnessed to create a stronger organization as a whole. For the past twenty odd years, traditionally jobs in IT management, customer service, and data collection (to name a few) have been sents overseas, and become detached from the company as a whole. To read more, there is an insightful article in Bloomberg Businesweek talks about “tapping in to the global talent pool” when talking about the future of outsourcing.

In short, outsourcing can be a platform for globalization as well as an expansion opportunity for a company.