Outsourcing information technology functions has become an increasingly established cost-effective strategy in the west. In USA, global outsourcing is now raising public policy concerns about its effects on the nation's long-term technological leadership and stakeholder ? employees relations. Managerial decisions in human resource terms means to eliminate high paying employees.

Global outsourcing is a direct challenge to corporate citizenship and human capital theory is now recognized by almost every US corporation. While accepting the managerial limits of these attempts, it is argued that corporations and industry associations need to develop and implement a human capital strategy that minimizes the negative consequences of global outsourcing with corporate citizenship responsibilities to employee and community stakeholders.

No doubts outsourcing has lead to many success stories and has so many associated advantages, taking outsourcing for granted is not recommended. There have been many instances where outsourcing has lead to major losses for many companies. This is the reason why companies need to plan and consult a lot before actually outsourcing their services.

The best way to go about is by Strategic outsourcing. Strategic outsourcing requires a company to carefully plan and analyze its long term objectives and decide which processes to outsource, why to outsource, when to outsource, where to outsource, the relative costs involved, the long term benefits, political stability of the outsourcing destination and lots more. Outsourcing can be a great help to companies but outsourcing without proper planning could lead to major failures. Before planning outsourcing a company must be sure of its long term goals and objectives.

You must have a clear set of justification in place for other parts of the offshoring strategy such as the offshoring business model, vision for the offshore operation, types of projects you plan to execute and so on. In addition, you need to revisit global outsourcing strategy as your business strategy changes and evolves over time. In off-shore outsourcing the destination country plays the most important role. Before finalizing the destination a company make sure that the destination country has a stable government, good infrastructure and cheap labour.