International service activities are changing how companies operate globally. They are not just moving domestic tasks to other countries for cost savings, but also reorganizing their processes. Factors like host-country resources, risks, and communication barriers influence where and how companies choose to outsource. Countries with low labor costs and skilled workers attract more outsourcing. Weak institutions and lack of experience in a country can deter companies from setting up operations there, but may encourage them to outsource tasks instead of managing them internally. This research shows that different factors drive companies to choose between outsourcing and setting up their own operations in different countries.