Outsourcing core functions abroad decreases productivity, while domestic outsourcing boosts it.
Outsourcing can affect how well a company works. A study in the Netherlands looked at how outsourcing, both within the country and internationally, affects how well companies do their work. They found that more productive companies are more likely to outsource. But when looking at all companies equally, international outsourcing of important tasks made companies less productive, while domestic outsourcing of support tasks made them more productive.