Global outsourcing and its impacts on organisations: problems and issues

In recent years, global outsourcing has received a great deal of attention by both practitioners and academics throughout the world. Globalisation is forcing multinational companies to outsource their products and services in order to reduce cost, enhance the competitive capability, and satisfy shareholders. Before an organisation decides whether to outsource part of its activities from either domestic companies or from other countries, it is crucial to understand the effectiveness of outsourcing in organisational architecture and the global market. This paper mainly focuses on the relationship between global outsourcing and organisational effectiveness, demonstrates the reasons and types of global outsourcing, and explores the impacts of global outsourcing to organisational effectiveness.