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Hidden Costs of Offshoring

It’s not that offshoring itself is bad.

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It’s not that offshoring itself is bad. If it makes economic sense to produce in a different country, then it makes economic sense. The problem is, companies that raced into offshoring manufacturing work in years past sometimes failed to take the full measure of the economics of the decision. Where offshoring has failed to deliver returns, it is often because some of the more subtle costs of sending production far away were not taken into account. Some of those hidden costs are revealed here.