Offshore outsourcing of Information Technology (IT) is a relatively new phenomenon. Because of the potential cost savings offered, many corporate CEO’s and CIO’s are looking to give a portion or all of their IT functions, as well as many other business processes, to cheaper offshore labor. To date, little focus has been given to the national or international implications of this practice. This paper proposes a research stream to examine the effects of offshore outsourcing in general, and information technology outsourcing specifically, on the foreign policy options available to an outsourcing nation. I hypothesize that the increased use of offshore outsourcing, especially when outsourcing resources that are difficult to substitute, will significantly increase international economic interdependence. Further, the increased interdependence, coupled with a high degree of visibility of the interdependence, will decrease the realistic options available to domestic foreign policy makers.
York, Paul T., "Effects of Offshore Outsourcing on Foreign Policy Flexibility: The Case of Information Technology Outsourcing" (2004). SAIS 2004 Proceedings. 50.