<s>
Outsourcing	B-Architecture
is	O
an	O
agreement	O
in	O
which	O
one	O
company	O
hires	O
another	O
company	O
to	O
be	O
responsible	O
for	O
a	O
planned	O
or	O
existing	O
activity	O
which	O
otherwise	O
is	O
or	O
could	O
be	O
carried	O
out	O
internally	O
,	O
i.e.	O
</s>
<s>
in-house	B-Architecture
,	O
and	O
sometimes	O
involves	O
transferring	O
employees	O
and	O
assets	O
from	O
one	O
firm	O
to	O
another	O
.	O
</s>
<s>
The	O
term	O
outsourcing	B-Architecture
,	O
which	O
came	O
from	O
the	O
phrase	O
outside	O
resourcing	O
,	O
originated	O
no	O
later	O
than	O
1981	O
.	O
</s>
<s>
The	O
practice	O
of	O
handing	O
over	O
control	O
of	O
public	O
services	O
to	O
private	O
enterprises	O
(	O
privatization	O
)	O
,	O
even	O
if	O
conducted	O
on	O
a	O
limited	O
,	O
short-term	O
basis	O
,	O
may	O
also	O
be	O
described	O
as	O
outsourcing	B-Architecture
.	O
</s>
<s>
Outsourcing	B-Architecture
includes	O
both	O
foreign	O
and	O
domestic	O
contracting	O
,	O
and	O
sometimes	O
includes	O
offshoring	O
(	O
relocating	O
a	O
business	O
function	O
to	O
a	O
distant	O
country	O
)	O
or	O
nearshoring	O
(	O
transferring	O
a	O
business	O
process	O
to	O
a	O
nearby	O
country	O
)	O
.	O
</s>
<s>
Offshoring	O
and	O
outsourcing	B-Architecture
are	O
not	O
mutually	O
inclusive	O
;	O
one	O
can	O
exist	O
without	O
the	O
other	O
.	O
</s>
<s>
They	O
can	O
be	O
intertwined	O
(	O
offshore	O
outsourcing	B-Architecture
)	O
,	O
and	O
can	O
be	O
individually	O
or	O
jointly	O
,	O
partially	O
or	O
completely	O
reversed	O
,	O
in	O
methods	O
including	O
those	O
known	O
as	O
reshoring	O
,	O
inshoring	O
,	O
and	O
insourcing	O
.	O
</s>
<s>
If	O
the	O
distant	O
workplace	O
is	O
a	O
foreign	O
subsidiary/owned	O
by	O
the	O
company	O
,	O
then	O
the	O
offshore	O
operation	O
is	O
a	O
captive	O
,	O
sometimes	O
referred	O
to	O
as	O
in-house	B-Architecture
offshore	O
.	O
</s>
<s>
is	O
the	O
practice	O
of	O
hiring	O
an	O
external	O
organization	O
to	O
perform	O
some	O
business	O
functions	O
( 	O
 '	O
outsourcing	B-Architecture
 '	O
)	O
in	O
a	O
country	O
other	O
than	O
the	O
one	O
where	O
the	O
products	O
or	O
services	O
are	O
actually	O
performed	O
,	O
developed	O
or	O
manufactured	O
( 	O
 '	O
offshore	O
 '	O
)	O
.	O
</s>
<s>
Insourcing	O
entails	O
bringing	O
processes	O
handled	O
by	O
third-party	O
firms	O
in-house	B-Architecture
,	O
and	O
is	O
sometimes	O
accomplished	O
via	O
vertical	O
integration	O
.	O
</s>
<s>
Nearshoring	O
refers	O
to	O
outsource	B-Architecture
to	O
a	O
nearby	O
country	O
.	O
</s>
<s>
refers	O
to	O
outsourcing	B-Architecture
to	O
companies	O
in	O
more	O
rural	O
locations	O
within	O
the	O
same	O
country	O
.	O
</s>
<s>
Friendshoring	O
refers	O
developing	O
supply	B-Device
chain	I-Device
networks	I-Device
with	O
allies	O
and	O
friendly	O
countries	O
.	O
</s>
<s>
In-housing	O
refers	O
to	O
hiring	O
employees	O
or	O
using	O
existing	O
employees/resources	O
to	O
undo	O
an	O
outsourcing	B-Architecture
.	O
</s>
<s>
An	O
intermediary	O
is	O
a	O
business	O
which	O
provides	O
a	O
contract	O
service	O
to	O
another	O
organization	O
while	O
contracting	B-Architecture
out	I-Architecture
that	O
same	O
service	O
.	O
</s>
<s>
Cost	O
savings	O
from	O
economies	O
of	O
scale	O
and	O
specialization	O
can	O
also	O
motivate	O
outsourcing	B-Architecture
,	O
even	O
if	O
not	O
offshoring	O
.	O
</s>
<s>
To	O
make	O
this	O
work	O
,	O
a	O
new	O
process	O
was	O
developed	O
:	O
"	O
outsource	B-Architecture
the	O
outsourcing	B-Architecture
process	O
"	O
.	O
</s>
<s>
Details	O
of	O
managing	O
DuPont	O
's	O
chief	O
information	O
officer	O
Cinda	O
Hallman	O
's	O
$4	O
billion	O
10-year	O
outsourcing	B-Architecture
contract	O
with	O
Computer	O
Sciences	O
Corporation	O
and	O
Accenture	O
were	O
outsourced	O
,	O
thus	O
avoiding	O
"	O
inventing	O
a	O
process	O
if	O
we	O
'd	O
done	O
it	O
in-house	B-Architecture
"	O
.	O
</s>
<s>
Outsourcing	B-Architecture
can	O
offer	O
greater	O
budget	O
flexibility	O
and	O
control	O
by	O
allowing	O
organizations	O
to	O
pay	O
for	O
the	O
services	O
and	O
business	O
functions	O
they	O
need	O
,	O
when	O
they	O
need	O
them	O
.	O
</s>
<s>
"	O
Do	O
what	O
you	O
do	O
best	O
and	O
outsource	B-Architecture
the	O
rest	O
"	O
has	O
become	O
an	O
internationally	O
recognized	O
business	O
tagline	O
first	O
"	O
coined	O
and	O
developed	O
"	O
in	O
the	O
1990s	O
by	O
management	O
consultant	O
Peter	O
Drucker	O
.	O
</s>
<s>
The	O
slogan	O
was	O
primarily	O
used	O
to	O
advocate	O
outsourcing	B-Architecture
as	O
a	O
viable	O
business	O
strategy	O
.	O
</s>
<s>
Drucker	O
began	O
explaining	O
the	O
concept	O
of	O
"	O
outsourcing	B-Architecture
"	O
as	O
early	O
as	O
1989	O
in	O
his	O
Wall	O
Street	O
Journal	O
article	O
entitled	O
"	O
Sell	O
the	O
Mailroom	O
"	O
.	O
</s>
<s>
The	O
biggest	O
difference	O
between	O
outsourcing	B-Architecture
and	O
in-house	B-Architecture
is	O
with	O
regards	O
to	O
the	O
difference	O
in	O
ownership	O
:	O
outsourcing	B-Architecture
usually	O
presupposes	O
integration	O
of	O
business	O
processes	O
under	O
a	O
different	O
ownership	O
,	O
over	O
which	O
the	O
client	O
business	O
has	O
minimal	O
or	O
no	O
control	O
.	O
</s>
<s>
This	O
requires	O
the	O
use	O
of	O
outsourcing	B-Architecture
relationship	O
management	O
.	O
</s>
<s>
Sometimes	O
the	O
effect	O
of	O
what	O
looks	O
like	O
outsourcing	B-Architecture
from	O
one	O
side	O
and	O
insourcing	O
from	O
the	O
other	O
side	O
can	O
be	O
unexpected	O
;	O
The	O
New	O
York	O
Times	O
reported	O
in	O
2001	O
that	O
"	O
6.4	O
million	O
Americans	O
..	O
worked	O
for	O
foreign	O
companies	O
as	O
of	O
2001	O
,	O
 [ but ] 	O
more	O
jobs	O
are	O
being	O
outsourced	O
than	O
"	O
[	O
the	O
reverse ]	O
.	O
</s>
<s>
Outsourcing	B-Architecture
is	O
said	O
to	O
help	O
firms	O
to	O
perform	O
well	O
in	O
their	O
core	O
competencies	O
,	O
fuel	O
innovation	O
,	O
and	O
mitigate	O
a	O
shortage	O
of	O
skill	O
or	O
expertise	O
in	O
the	O
areas	O
where	O
they	O
want	O
to	O
outsource	B-Architecture
.	O
</s>
<s>
Following	O
the	O
adding	O
of	O
management	O
layers	O
in	O
the	O
1950s	O
and	O
1960s	O
to	O
support	O
expansion	O
for	O
the	O
sake	O
of	O
economy	O
of	O
scale	O
,	O
corporations	O
found	O
that	O
agility	O
and	O
added	O
profits	O
could	O
be	O
obtained	O
by	O
focusing	O
on	O
core	O
strengths	O
;	O
the	O
1970s	O
and	O
1980s	O
were	O
the	O
beginnings	O
of	O
what	O
later	O
was	O
named	O
outsourcing	B-Architecture
.	O
</s>
<s>
Kodak	O
's	O
1989	O
"	O
outsourcing	B-Architecture
most	O
of	O
its	O
information	B-General_Concept
technology	I-General_Concept
systems	I-General_Concept
"	O
was	O
followed	O
by	O
others	O
during	O
the	O
1990s	O
.	O
</s>
<s>
In	O
2013	O
,	O
the	O
International	O
Association	O
of	O
Outsourcing	B-Architecture
Professionals	O
gave	O
recognition	O
to	O
Electronic	O
Data	O
Systems	O
Corporation	O
's	O
Morton	O
H	O
.	O
Meyerson	O
who	O
,	O
in	O
1967	O
,	O
proposed	O
the	O
business	O
model	O
that	O
eventually	O
became	O
known	O
as	O
outsourcing	B-Architecture
.	O
</s>
<s>
Growth	O
of	O
offshoring	O
of	O
IT-enabled	O
services	O
,	O
although	O
not	O
universally	O
accepted	O
,	O
both	O
to	O
subsidiaries	O
and	O
to	O
outside	O
companies	O
(	O
offshore	O
outsourcing	B-Architecture
)	O
is	O
linked	O
to	O
the	O
availability	O
of	O
large	O
amounts	O
of	O
reliable	O
and	O
affordable	O
communication	O
infrastructure	O
following	O
the	O
telecommunication	O
and	O
Internet	O
expansion	O
of	O
the	O
late	O
1990s	O
.	O
</s>
<s>
In	O
the	O
early	O
21st	O
century	O
,	O
businesses	O
increasingly	O
outsourced	O
to	O
suppliers	O
outside	O
their	O
own	O
country	O
,	O
sometimes	O
referred	O
to	O
as	O
offshoring	O
or	O
offshore	O
outsourcing	B-Architecture
.	O
</s>
<s>
Other	O
options	O
subsequently	O
emerged	O
:	O
nearshoring	O
,	O
crowdsourcing	O
,	O
multisourcing	O
,	O
strategic	O
alliances/strategic	O
partnerships	O
,	O
strategic	O
outsourcing	B-Architecture
.	O
</s>
<s>
In	O
2009	O
,	O
by	O
way	O
of	O
recognition	O
,	O
Peter	O
Drucker	O
posthumously	O
received	O
a	O
significant	O
honor	O
when	O
he	O
was	O
inducted	O
into	O
the	O
Outsourcing	B-Architecture
Hall	O
of	O
Fame	O
for	O
his	O
outstanding	O
work	O
in	O
the	O
field	O
.	O
</s>
<s>
French	O
companies	O
outsource	B-Architecture
to	O
North	O
Africa	O
for	O
similar	O
reasons	O
.	O
</s>
<s>
Although	O
offshoring	O
initially	O
focused	O
on	O
manufacturing	O
,	O
white-collar	O
offshoring/outsourcing	O
has	O
grown	O
rapidly	O
since	O
the	O
early	O
21st	O
century	O
.	O
</s>
<s>
On	O
average	O
,	O
software	B-General_Concept
engineers	I-General_Concept
are	O
getting	O
paid	O
between	O
250,000	O
and	O
1,500,000	O
rupees	O
(	O
US$	O
4,000	O
to	O
US$	O
23,000	O
)	O
in	O
India	O
as	O
opposed	O
to	O
$	O
40,000	O
–	O
$	O
100,000	O
in	O
countries	O
such	O
as	O
the	O
U.S.	O
and	O
Canada	O
.	O
</s>
<s>
It	O
takes	O
only	O
a	O
few	O
hours	O
to	O
travel	O
between	O
Costa	O
Rica	O
and	O
U.S.	O
Companies	O
such	O
as	O
Intel	O
,	O
Procter	O
&	O
Gamble	O
,	O
HP	O
,	O
Gensler	O
,	O
Amazon	B-Application
and	O
Bank	O
of	O
America	O
have	O
big	O
operations	O
in	O
Costa	O
Rica	O
.	O
</s>
<s>
Ending	O
a	O
government	O
outsourcing	B-Architecture
arrangement	O
poses	O
difficulties	O
.	O
</s>
<s>
While	O
U.S.	O
companies	O
do	O
not	O
outsource	B-Architecture
to	O
reduce	O
high	O
top	O
level	O
executive	O
or	O
managerial	O
costs	O
,	O
they	O
primarily	O
outsource	B-Architecture
to	O
reduce	O
peripheral	O
and	O
"	O
non-core	O
"	O
business	O
expenses	O
.	O
</s>
<s>
For	O
small	O
businesses	O
,	O
contracting/subcontracting/	O
"	O
outsourcing	B-Architecture
"	O
might	O
be	O
done	O
to	O
improve	O
work-life	O
balance	O
.	O
</s>
<s>
There	O
are	O
many	O
outsourcing	B-Architecture
models	O
,	O
with	O
variations	O
by	O
country	O
,	O
year	O
and	O
industry	O
.	O
</s>
<s>
Another	O
approach	O
is	O
to	O
differentiate	O
between	O
tactical	O
and	O
strategic	O
outsourcing	B-Architecture
models	O
.	O
</s>
<s>
To	O
gain	O
expertise	O
not	O
available	O
in-house	B-Architecture
.	O
</s>
<s>
When	O
offshore	O
outsourcing	B-Architecture
knowledge	O
work	O
,	O
firms	O
heavily	O
rely	O
on	O
the	O
availability	O
of	O
technical	O
personnel	O
at	O
offshore	O
locations	O
.	O
</s>
<s>
This	O
contrasts	O
with	O
an	O
"	O
all	O
in-the-cloud	O
"	O
service	O
scenario	O
,	O
where	O
the	O
identity	O
service	O
is	O
built	O
,	O
hosted	O
and	O
operated	O
by	O
the	O
service	O
provider	O
in	O
an	O
externally	O
hosted	O
,	O
cloud	B-Architecture
computing	I-Architecture
infrastructure	O
.	O
</s>
<s>
The	O
global	O
software	O
R&D	O
services	O
market	O
,	O
as	O
contrasted	O
to	O
information	B-General_Concept
technology	I-General_Concept
outsourcing	B-Architecture
(	O
ITO	O
)	O
and	O
business	O
process	O
outsourcing	B-Architecture
(	O
BPO	O
)	O
,	O
is	O
rather	O
young	O
and	O
currently	O
is	O
at	O
a	O
relatively	O
early	O
stage	O
of	O
development	O
.	O
</s>
<s>
Although	O
many	O
countries	O
have	O
participated	O
in	O
the	O
Offshore	O
outsourcing	B-Architecture
of	O
software	O
development	O
,	O
their	O
involvement	O
in	O
co-sourced	O
and	O
outsourced	O
Research	O
&	O
Development	O
(	O
R&D	O
)	O
was	O
somewhat	O
limited	O
.	O
</s>
<s>
Gartner	O
Group	O
adds	O
in	O
Russia	O
,	O
but	O
does	O
not	O
make	O
clear	O
whether	O
this	O
is	O
pure	O
R&D	O
or	O
run-of-the-mill	O
IT	B-Architecture
outsourcing	I-Architecture
.	O
</s>
<s>
Further	O
complications	O
arise	O
from	O
cultural	O
differences	O
,	O
which	O
apply	O
even	O
if	O
the	O
development	O
is	O
carried	O
out	O
by	O
an	O
in-house	B-Architecture
offshore	O
team	O
.	O
</s>
<s>
Offshore	O
Software	O
R&D	O
means	O
that	O
company	O
A	O
turns	O
over	O
responsibility	O
,	O
in	O
whole	O
or	O
in	O
part	O
,	O
of	O
an	O
in-house	B-Architecture
software	O
development	O
to	O
company	O
B	O
whose	O
location	O
is	O
outside	O
of	O
company	O
A	O
's	O
national	O
jurisdiction	O
.	O
</s>
<s>
Ownership	O
of	O
intellectual	O
property	O
by	O
the	O
outsourcing	B-Architecture
company	O
,	O
despite	O
outside	O
development	O
,	O
was	O
the	O
goal	O
.	O
</s>
<s>
To	O
defend	O
against	O
tax-motivated	O
cost-shifting	O
,	O
the	O
U.S.	O
government	O
passed	O
regulations	O
in	O
2006	O
to	O
make	O
outsourcing	B-Architecture
research	O
harder	O
.	O
</s>
<s>
A	O
2018	O
University	O
of	O
Chicago	O
Law	O
School	O
article	O
titled	O
"	O
The	O
Future	O
of	O
Outsourcing	B-Architecture
"	O
begins	O
with	O
"	O
The	O
future	O
of	O
outsourcing	B-Architecture
is	O
digital.	O
"	O
</s>
<s>
According	O
to	O
other	O
sources	O
,	O
the	O
"	O
Do	O
what	O
you	O
do	O
best	O
and	O
outsource	B-Architecture
the	O
rest	O
"	O
approach	O
means	O
that	O
"	O
integration	O
with	O
retained	O
systems	O
"	O
is	O
the	O
new	O
transition	O
challenge	O
;	O
people	O
training	O
still	O
exists	O
,	O
but	O
is	O
merely	O
an	O
"	O
also.	O
"	O
</s>
<s>
Forbes	O
considered	O
the	O
2016	O
U.S.	O
presidential	O
election	O
"	O
the	O
most	O
disruptive	O
change	O
agent	O
for	O
the	O
outsourcing	B-Architecture
industry	O
"	O
,	O
especially	O
the	O
renewed	O
"	O
invest	O
in	O
America	O
"	O
goal	O
highlighted	O
in	O
campaigning	O
,	O
but	O
the	O
magazine	O
tepidly	O
reversed	O
direction	O
in	O
2019	O
as	O
to	O
the	O
outcome	O
for	O
employment	O
.	O
</s>
<s>
This	O
often	O
requires	O
the	O
assimilation	O
of	O
new	O
communication	O
methods	O
such	O
as	O
voice	B-Application
over	I-Application
IP	I-Application
,	O
instant	B-Application
messaging	I-Application
,	O
and	O
issue	B-Application
tracking	I-Application
systems	I-Application
,	O
new	O
time	B-Application
management	I-Application
methods	O
such	O
as	O
time	B-Application
tracking	I-Application
software	I-Application
,	O
and	O
new	O
cost	O
-	O
and	O
schedule-assessment	O
tools	O
such	O
as	O
cost	O
estimation	O
software	O
.	O
</s>
<s>
In	O
the	O
area	O
of	O
call-center	O
outsourcing	B-Architecture
,	O
especially	O
when	O
combined	O
with	O
offshoring	O
,	O
agents	O
may	O
speak	O
with	O
different	O
linguistic	O
features	O
such	O
as	O
accents	O
,	O
word	O
use	O
and	O
phraseology	O
,	O
which	O
may	O
impede	O
comprehension	O
.	O
</s>
<s>
University	O
of	O
Tennessee	O
researchers	O
have	O
been	O
studying	O
complex	O
outsourcing	B-Architecture
relationships	O
since	O
2003	O
.	O
</s>
<s>
Emerging	O
thinking	O
regarding	O
strategic	O
outsourcing	B-Architecture
is	O
focusing	O
on	O
creating	O
a	O
contract	O
structure	O
in	O
which	O
the	O
parties	O
have	O
a	O
vested	O
interest	O
in	O
managing	O
what	O
are	O
often	O
highly	O
complex	O
business	O
arrangements	O
in	O
a	O
more	O
collaborative	O
,	O
aligned	O
,	O
flexible	O
,	O
and	O
credible	O
way	O
.	O
</s>
<s>
Richard	O
Baldwin	O
's	O
2006	O
The	O
Great	O
Unbundling	O
work	O
was	O
followed	O
in	O
2012	O
by	O
Globalization	O
's	O
Second	O
Acceleration	O
(	O
the	O
Second	O
Unbundling	O
)	O
and	O
in	O
2016	O
by	O
The	O
Great	O
Convergence	O
:	O
Information	B-General_Concept
Technology	I-General_Concept
and	O
the	O
New	O
Globalization	O
.	O
</s>
<s>
A	O
number	O
of	O
outsourcings	B-Architecture
and	O
offshorings	O
that	O
were	O
deemed	O
failures	O
led	O
to	O
reversals	O
signaled	O
by	O
use	O
of	O
terms	O
such	O
as	O
insourcing	O
and	O
reshoring	O
.	O
</s>
<s>
A	O
clue	O
to	O
a	O
tipping	O
point	O
having	O
been	O
reached	O
was	O
a	O
short	O
essay	O
titled	O
"	O
Maybe	O
You	O
Should	O
n't	O
Outsource	B-Architecture
Everything	O
After	O
All	O
"	O
and	O
the	O
longer	O
"	O
That	O
Job	O
Sent	O
to	O
India	O
May	O
Now	O
Go	O
to	O
Indiana.	O
"	O
</s>
<s>
Another	O
reason	O
for	O
a	O
decrease	O
in	O
outsourcing	B-Architecture
is	O
that	O
many	O
jobs	O
that	O
were	O
subcontracted	O
abroad	O
have	O
been	O
replaced	O
by	O
technological	O
advances	O
.	O
</s>
<s>
Public	O
opinion	O
in	O
the	O
U.S.	O
and	O
other	O
Western	O
powers	O
opposing	O
outsourcing	B-Architecture
was	O
particularly	O
strengthened	O
by	O
the	O
drastic	O
increase	O
in	O
unemployment	O
as	O
a	O
result	O
of	O
the	O
2007	O
–	O
2008	O
financial	O
crisis	O
.	O
</s>
<s>
From	O
2000	O
to	O
2010	O
,	O
the	O
U.S.	O
experienced	O
a	O
net	O
loss	O
of	O
687,000	O
jobs	O
due	O
to	O
outsourcing	B-Architecture
,	O
primarily	O
in	O
the	O
computers	O
and	O
electronics	O
sector	O
.	O
</s>
<s>
Public	O
disenchantment	O
with	O
outsourcing	B-Architecture
has	O
not	O
only	O
stirred	O
political	O
responses	O
,	O
as	O
seen	O
in	O
the	O
2012	O
U.S.	O
presidential	O
campaigns	O
,	O
but	O
it	O
has	O
also	O
made	O
companies	O
more	O
reluctant	O
to	O
outsource	B-Architecture
or	O
offshore	O
jobs	O
.	O
</s>
<s>
A	O
counterswing	O
depicted	O
by	O
a	O
2016	O
Deloitte	O
survey	O
suggested	O
that	O
companies	O
are	O
no	O
longer	O
reluctant	O
to	O
outsource	B-Architecture
.	O
</s>
<s>
Organizations	O
are	O
"	O
redefining	O
the	O
ways	O
they	O
enter	O
into	O
outsourcing	B-Architecture
relationships	O
and	O
manage	O
the	O
ensuing	O
risks	O
"	O
.	O
</s>
<s>
Organizations	O
are	O
changing	O
the	O
way	O
they	O
are	O
managing	O
their	O
relationships	O
with	O
outsourcing	B-Architecture
providers	O
to	O
"	O
maximize	O
the	O
value	O
of	O
those	O
relationships	O
"	O
.	O
</s>
<s>
Insourcing	O
is	O
the	O
process	O
of	O
reversing	O
an	O
outsourcing	B-Architecture
,	O
possibly	O
using	O
help	O
from	O
those	O
not	O
currently	O
part	O
of	O
the	O
inhouse	O
staff	O
.	O
</s>
<s>
Outsourcing	B-Architecture
has	O
gone	O
through	O
many	O
iterations	O
and	O
reinventions	O
,	O
and	O
some	O
outsourcing	B-Architecture
contracts	O
have	O
been	O
partially	O
or	O
fully	O
reversed	O
.	O
</s>
<s>
To	O
those	O
who	O
are	O
concerned	O
that	O
nations	O
may	O
be	O
losing	O
a	O
net	O
number	O
of	O
jobs	O
due	O
to	O
outsourcing	B-Architecture
,	O
some	O
point	O
out	O
that	O
insourcing	O
also	O
occurs	O
.	O
</s>
<s>
The	O
impact	O
of	O
offshore	O
outsourcing	B-Architecture
,	O
according	O
to	O
two	O
estimates	O
published	O
by	O
The	O
Economist	O
,	O
showed	O
unequal	O
effect	O
during	O
the	O
period	O
studied	O
2004	O
to	O
2015	O
,	O
ranging	O
from	O
150,000	O
to	O
as	O
high	O
as	O
300,000	O
jobs	O
lost	O
per	O
year	O
.	O
</s>
<s>
""	O
refers	O
to	O
hiring	O
developers	O
to	O
work	O
in-house	B-Architecture
from	O
virtual	O
(	O
remote	O
)	O
facilities	O
.	O
</s>
<s>
From	O
the	O
standpoint	O
of	O
labor	O
,	O
outsourcing	B-Architecture
may	O
represent	O
a	O
new	O
threat	O
,	O
contributing	O
to	O
worker	O
insecurity	O
,	O
and	O
is	O
reflective	O
of	O
the	O
general	O
process	O
of	O
globalization	O
and	O
economic	O
polarization	O
.	O
</s>
<s>
Western	O
governments	O
may	O
attempt	O
to	O
compensate	O
workers	O
affected	O
by	O
outsourcing	B-Architecture
through	O
various	O
forms	O
of	O
legislation	O
.	O
</s>
<s>
A	O
main	O
feature	O
of	O
outsourcing	B-Architecture
influencing	O
policy-making	O
is	O
the	O
unpredictability	O
it	O
generates	O
regarding	O
the	O
future	O
of	O
any	O
particular	O
sector	O
or	O
skill-group	O
.	O
</s>
<s>
Studies	O
suggest	O
that	O
the	O
effect	O
of	O
U.S.	O
outsourcing	B-Architecture
on	O
Mexico	O
is	O
that	O
for	O
every	O
10%	O
increase	O
in	O
U.S.	O
wages	O
,	O
north	O
Mexico	O
cities	O
along	O
the	O
border	O
experienced	O
wage	O
rises	O
of	O
2.5	O
%	O
,	O
about	O
0.69	O
%	O
higher	O
than	O
in	O
inner	O
cities	O
.	O
</s>
<s>
Outsourcing	B-Architecture
results	O
from	O
an	O
internationalization	O
of	O
labor	O
markets	O
as	O
more	O
tasks	O
become	O
tradable	O
.	O
</s>
<s>
The	O
tradeoffs	O
are	O
not	O
always	O
balanced	O
,	O
and	O
a	O
2004	O
viewer	O
of	O
the	O
situation	O
said	O
"	O
the	O
total	O
number	O
of	O
jobs	O
realized	O
in	O
the	O
United	O
States	O
from	O
insourcing	O
is	O
far	O
less	O
than	O
those	O
lost	O
through	O
outsourcing.	O
"	O
</s>
<s>
Although	O
outsourcing	B-Architecture
can	O
influence	O
environmental	O
de-regulatory	O
trends	O
,	O
the	O
added	O
cost	O
of	O
preventing	O
pollution	O
does	O
not	O
majorly	O
determine	O
trade	O
flows	O
or	O
industrialization	O
.	O
</s>
<s>
Outsourcing	B-Architecture
has	O
contributed	O
to	O
further	O
levelling	O
of	O
global	O
inequalities	O
as	O
it	O
has	O
led	O
to	O
general	O
trends	O
of	O
industrialization	O
in	O
the	O
Global	O
South	O
and	O
deindustrialization	O
in	O
the	O
Global	O
North	O
.	O
</s>
<s>
Protection	O
of	O
some	O
data	O
involved	O
in	O
outsourcing	B-Architecture
,	O
such	O
as	O
about	O
patients	O
(	O
HIPAA	O
)	O
is	O
one	O
of	O
the	O
few	O
federal	O
protections	O
.	O
</s>
<s>
"	O
Outsourcing	B-Architecture
"	O
is	O
a	O
continuing	O
political	O
issue	O
in	O
the	O
U.S.	O
,	O
having	O
been	O
conflated	O
with	O
offshoring	O
during	O
the	O
2004	O
U.S.	O
presidential	O
election	O
.	O
</s>
<s>
The	O
political	O
debate	O
centered	O
on	O
outsourcing	B-Architecture
's	O
consequences	O
for	O
the	O
domestic	O
U.S.	O
workforce	O
.	O
</s>
<s>
Democratic	O
U.S.	O
presidential	O
candidate	O
John	O
Kerry	O
called	O
U.S.	O
firms	O
that	O
outsource	B-Architecture
jobs	O
abroad	O
or	O
that	O
incorporate	O
overseas	O
in	O
tax	O
havens	O
to	O
avoid	O
paying	O
their	O
"	O
fair	O
share	O
"	O
of	O
U.S.	O
taxes	O
"	O
Benedict	O
Arnold	O
corporations	O
"	O
.	O
</s>
<s>
A	O
Zogby	O
International	O
August	O
2004	O
poll	O
found	O
that	O
71%	O
of	O
American	O
voters	O
believed	O
"	O
outsourcing	B-Architecture
jobs	O
overseas	O
"	O
hurt	O
the	O
economy	O
while	O
another	O
62%	O
believed	O
that	O
the	O
U.S.	O
government	O
should	O
impose	O
some	O
legislative	O
action	O
against	O
these	O
companies	O
,	O
possibly	O
in	O
the	O
form	O
of	O
increased	O
taxes	O
.	O
</s>
<s>
While	O
labor	O
advocates	O
claim	O
union	O
busting	O
as	O
one	O
possible	O
cause	O
of	O
outsourcing	B-Architecture
,	O
another	O
claim	O
is	O
high	O
corporate	O
income	O
tax	O
rate	O
in	O
the	O
U.S.	O
relative	O
to	O
other	O
OECD	O
nations	O
,	O
and	O
the	O
practice	O
of	O
taxing	O
revenues	O
earned	O
outside	O
of	O
U.S.	O
jurisdiction	O
,	O
a	O
very	O
uncommon	O
practice	O
.	O
</s>
<s>
Case	O
subsequent	O
to	O
the	O
European	O
Court	O
of	O
Justice	O
's	O
Christel	O
Schmidt	O
v	O
.	O
Spar	O
-	O
und	O
Leihkasse	O
der	O
früheren	O
Ämter	O
Bordesholm	O
,	O
Kiel	O
und	O
Cronshagen	O
,	O
Case	O
C-392/92	O
 [ 1994 ] 	O
have	O
disputed	O
whether	O
a	O
particular	O
contracting-out	B-Architecture
exercise	O
constituted	O
a	O
transfer	O
of	O
an	O
undertaking	O
(	O
see	O
,	O
for	O
example	O
,	O
Ayse	O
Süzen	O
v	O
.	O
Zehnacker	O
Gebäudereinigung	O
GmbH	O
Krankenhausservice	O
,	O
Case	O
C-13/95	O
 [ 1997 ] 	O
)	O
.	O
</s>
<s>
Countries	O
that	O
have	O
been	O
the	O
focus	O
of	O
outsourcing	B-Architecture
include	O
India	O
and	O
the	O
Philippines	O
for	O
American	O
and	O
European	O
companies	O
,	O
and	O
China	O
and	O
Vietnam	O
for	O
Japanese	O
companies	O
.	O
</s>
<s>
A	O
China-based	O
company	O
,	O
Lenovo	O
,	O
outsourced/reshored	O
manufacturing	O
of	O
some	O
time-critical	O
customized	O
PCs	B-Device
to	O
the	O
U.S.	O
since	O
"	O
If	O
it	O
made	O
them	O
in	O
China	O
they	O
would	O
spend	O
six	O
weeks	O
on	O
a	O
ship.	O
"	O
</s>
<s>
Nearshoring	O
or	O
nearsourcing	O
is	O
having	O
business	O
processes	O
,	O
especially	O
information	B-General_Concept
technology	I-General_Concept
processes	O
such	O
as	O
application	O
maintenance	O
and	O
development	O
or	O
testing	O
,	O
in	O
a	O
nearby	O
country	O
,	O
often	O
sharing	O
a	O
border	O
with	O
the	O
target	O
country	O
.	O
</s>
<s>
The	O
hybrid	O
term	O
"	O
nearshore	O
outsourcing	B-Architecture
"	O
is	O
sometimes	O
used	O
as	O
an	O
alternative	O
,	O
since	O
nearshore	O
workers	O
are	O
not	O
employees	O
of	O
the	O
company	O
for	O
which	O
the	O
work	O
is	O
performed	O
.	O
</s>
<s>
Typically	O
,	O
this	O
is	O
contrasted	O
with	O
the	O
trend	O
to	O
outsource	B-Architecture
low-wage	O
manufacturing	O
operations	O
to	O
developing	O
nations	O
(	O
offshoring	O
)	O
,	O
and	O
reflects	O
a	O
reversal	O
of	O
that	O
trend	O
.	O
</s>
<s>
Sometime	O
,	O
the	O
work	O
is	O
done	O
by	O
an	O
outside	O
contracted	O
company	O
rather	O
than	O
internally	O
(	O
insourcing	O
)	O
,	O
but	O
unlike	O
offshore	O
outsourcing	B-Architecture
,	O
the	O
work	O
is	O
done	O
in	O
fairly	O
close	O
proximity	O
to	O
either	O
the	O
company	O
headquarters	O
or	O
its	O
target	O
market	O
.	O
</s>
<s>
In	O
Europe	O
,	O
nearshore	O
outsourcing	B-Architecture
relationships	O
are	O
between	O
clients	O
in	O
larger	O
European	O
economies	O
and	O
various	O
providers	O
in	O
smaller	O
European	O
nations	O
.	O
</s>
<s>
For	O
example	O
,	O
as	O
of	O
2020	O
Portugal	O
is	O
considered	O
to	O
be	O
the	O
most	O
trending	O
outsourcing	B-Architecture
destination	O
as	O
big	O
companies	O
like	O
Mercedes	O
,	O
Google	O
,	O
Jaguar	O
,	O
Sky	O
News	O
,	O
Natixis	O
and	O
BNP	O
Paribas	O
opening	O
development	O
centers	O
in	O
Lisbon	O
and	O
Porto	O
,	O
where	O
labor	O
costs	O
are	O
lower	O
,	O
talent	O
comes	O
from	O
excellent	O
Universities	O
,	O
there	O
's	O
availability	O
of	O
skills	O
and	O
the	O
time	O
zone	O
is	O
GMT	O
(	O
the	O
same	O
as	O
London	O
)	O
.	O
</s>
<s>
The	O
nearshoring	O
of	O
call	O
centers	O
,	O
shared	O
services	O
centers	O
,	O
and	O
business	O
process	O
outsourcing	B-Architecture
(	O
BPO	O
)	O
rose	O
as	O
offshore	O
outsourcing	B-Architecture
was	O
seen	O
to	O
be	O
relatively	O
less	O
valuable	O
.	O
</s>
<s>
In	O
hearings	O
on	O
this	O
matter	O
,	O
a	O
U.S.	O
senator	O
called	O
these	O
"	O
their	O
outsourcing	B-Architecture
visa.	O
"	O
</s>
<s>
Print	O
and	O
mail	O
outsourcing	B-Architecture
is	O
the	O
outsourcing	B-Architecture
of	O
document	O
printing	O
and	O
distribution	O
.	O
</s>
<s>
The	O
Print	O
Services	O
&	O
Distribution	O
Association	O
was	O
formed	O
in	O
1946	O
,	O
and	O
its	O
members	O
provide	O
services	O
that	O
today	O
might	O
involve	O
the	O
word	O
outsource	B-Architecture
.	O
</s>
<s>
The	O
term	O
"	O
outsourcing	B-Architecture
"	O
became	O
very	O
common	O
in	O
the	O
print	O
and	O
mail	O
business	O
during	O
the	O
1990s	O
,	O
and	O
later	O
expanded	O
to	O
be	O
very	O
broad	O
and	O
inclusive	O
of	O
most	O
any	O
process	O
by	O
2000	O
.	O
</s>
<s>
The	O
term	O
outsource	B-Architecture
marketing	O
has	O
been	O
used	O
in	O
Britain	O
to	O
mean	O
the	O
outsourcing	B-Architecture
of	O
the	O
marketing	O
function	O
.	O
</s>
<s>
Business	O
process	O
outsourcing	B-Architecture
(	O
BPO	O
)	O
is	O
a	O
subset	O
of	O
outsourcing	B-Architecture
that	O
involves	O
the	O
contracting	O
of	O
the	O
operations	O
and	O
responsibilities	O
of	O
a	O
specific	O
business	O
process	O
to	O
a	O
third-party	O
service	O
provider	O
.	O
</s>
<s>
BPO	O
is	O
typically	O
categorized	O
into	O
back	O
office	O
and	O
front	O
office	O
outsourcing	B-Architecture
.	O
</s>
<s>
BPO	O
can	O
be	O
offshore	O
outsourcing	B-Architecture
,	O
near-shore	O
outsourcing	B-Architecture
to	O
a	O
nearby	O
country	O
,	O
or	O
onshore	O
outsourcing	B-Architecture
to	O
the	O
same	O
country	O
.	O
</s>
<s>
Information	O
technology-enabled	O
service	O
(	O
ITES-BPO	O
)	O
,	O
knowledge	O
process	O
outsourcing	B-Architecture
(	O
KPO	O
)	O
and	O
legal	O
process	O
outsourcing	B-Architecture
(	O
LPO	O
)	O
are	O
some	O
of	O
the	O
sub-segments	O
of	O
BPO	O
.	O
</s>
<s>
Although	O
BPO	O
began	O
as	O
a	O
cost-reducer	O
,	O
changes	O
(	O
specifically	O
the	O
move	O
to	O
more	O
service-based	O
rather	O
than	O
product-based	O
contracts	O
)	O
,	O
companies	O
now	O
choose	O
to	O
outsource	B-Architecture
their	O
back-office	O
increasingly	O
for	O
time	O
flexibility	O
and	O
direct	O
quality	O
control	O
.	O
</s>
<s>
Business	O
process	O
outsourcing	B-Architecture
enhances	O
the	O
flexibility	O
of	O
an	O
organization	O
in	O
different	O
ways	O
:	O
</s>
<s>
BPO	O
vendor	O
charges	O
are	O
project-based	O
or	O
fee-for-service	O
,	O
using	O
business	O
models	O
such	O
as	O
remote	O
in-sourcing	O
or	O
similar	O
software	O
development	O
and	O
outsourcing	B-Architecture
models	O
.	O
</s>
<s>
Supply	O
chain	O
management	O
with	O
effective	O
use	O
of	O
supply	O
chain	O
partners	O
and	O
business	O
process	O
outsourcing	B-Architecture
can	O
increase	O
the	O
speed	O
of	O
several	O
business	O
processes	O
.	O
</s>
<s>
Risks	O
and	O
threats	O
of	O
outsourcing	B-Architecture
must	O
therefore	O
be	O
managed	O
,	O
to	O
achieve	O
any	O
benefits	O
.	O
</s>
<s>
In	O
order	O
to	O
manage	O
outsourcing	B-Architecture
in	O
a	O
structured	O
way	O
,	O
maximizing	O
positive	O
outcome	O
,	O
minimizing	O
risks	O
and	O
avoiding	O
any	O
threats	O
,	O
a	O
business	O
continuity	O
management	O
(	O
BCM	O
)	O
model	O
is	O
set	O
up	O
.	O
</s>
<s>
Industry	O
analysts	O
have	O
identified	O
robotic	B-Application
process	I-Application
automation	I-Application
(	O
RPA	O
)	O
software	O
and	O
in	O
particular	O
the	O
enhanced	O
self-guided	O
RPAAI	O
based	O
on	O
artificial	B-Application
intelligence	I-Application
as	O
a	O
potential	O
threat	O
to	O
the	O
industry	O
and	O
speculate	O
as	O
to	O
the	O
likely	O
long-term	O
impact	O
.	O
</s>
<s>
The	O
BPO	O
industry	O
is	O
a	O
small	O
segment	O
of	O
the	O
total	O
outsourcing	B-Architecture
industry	O
in	O
India	O
.	O
</s>
<s>
In	O
2015	O
,	O
official	O
statistics	O
put	O
the	O
size	O
of	O
the	O
total	O
outsourcing	B-Architecture
industry	O
in	O
China	O
,	O
including	O
not	O
only	O
the	O
BPO	O
industry	O
but	O
also	O
IT	B-Architecture
outsourcing	I-Architecture
services	O
,	O
at	O
$130.9	O
billion	O
.	O
</s>
