Offshore Oversight

  PMO  

To embark on a discussion of of offshoring and causality, we must recognize that most actions are the result of one or more stimuli. If we use this lens to look at offshoring, then we realize it is a result of other forces at work. What we must do is to identify some of the causal factors for this movement.

Historical Perspective

In capitalist societies, the operation of the economy hinges on the movement of money. There are "consumers" and there are "purveyors." Almost everything follows this chain of activity. The child eats the baby food, the parents buy the baby food from the local store, the store buys the baby food from the distributor, the distributor buys it from the manufacturer and the manufacturer buys the various components that go into the baby food from its suppliers.

In this seemingly linear relationship exists, in fact, a tangled web of interdependencies that most people overlook. For example, what happens when the parents demand the food to be lower priced or begin to buy their groceries via the Internet from a mass merchant located in another state all in the name of saving money?

Hyperconsumerism

Many people are aware of the dangers of hypercompetition. In economic terms, this is when there is an industry with firms who are in fierce competition and drop prices in order to win customers. Each competitor keeps dropping prices in order to try and …

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