Outsourcing and Offshoring Finance Activities

Abstract

This chapter reviews the outsourcing and offshoring of finance activities and the socioeconomic implications for home and host countries. Part one provides an overview of the hierarchy of finance activities in the firm and the phenomenon of outsourcing and offshoring of these activities. The phenomenon is then examined from a firm perspective, highlighting the major drivers, trends and issues using theoretical frameworks and case examples from the author’s in-depth interviews with 37 managers at 25 multinational firms. Finally, the socioeconomic issues and implications of offshoring activities are discussed in the context of both home and host countries.