Outsourcing is the contracting out of a business process to a third-party. It includes both foreign and domestic contracting and sometimes also includes offshoring ot relocating a business function to another country. One of the benefits which outsourcing has is financial savings that comes from lower international labor rates. Also, avoidance of high taxes and high energy costs is another reason.
However, outsourcing has negative aspects as well. From the perspective of labor, outsourcing may offer a new threat such as contribution to worker insecurity. Furthermore, it is reflective of the general process of globalization and economic polarization.