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Offshore Outsourcing of Engineering: Implications for Innovation Policy Presented to Carnegie Mellon ... - page 9 / 46

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Ron Hira, Columbia University

rh2107@columbia.edu

9

Some Definitions

Outsourcing

Procter & Gamble contracts with HP for IT services – estimated $3bn over 10 years.

Not new – classic make or buy issue in supply chain management – Freemarkets

Offshore Outsourcing

Northrup Grumman contracts with Satyam to provide IT services

Nearly all work is completed offshore

Near Shore, Best Shore, etc.

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