Outsourcing is when companies move parts of their production to other companies, either in the same country or abroad. This study looked at how outsourcing affects Portuguese companies. They found that international outsourcing can increase jobs for employees who receive a salary and for R&D workers, but it can also raise labor costs. It can also boost a company's exports and trade balance, but it may not make the company more efficient. In fact, companies that start outsourcing may see lower productivity and less capital per worker.