Global sourcing of production and offshore outsourcing business and IT services are common practices

Global sourcing of production and offshore outsourcing business and IT services are common practices, but many international businesses are now, in 2021, realising they have gone too far.’ Using illustrative examples, discuss this proposition as follows:

  • Define ‘make-or-buy decision’  ‘captive centre’ and ‘outsourcing.’ (3 marks)
  • What factors should an international business consider when looking at building a production operation in a foreign country? (11 marks) Assess the major risks in offshore outsourcing business and IT services, and how these risks can be mitigated. (11 marks