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outsourcing
(redirected from Labor arbitrage)

    Also found in: Financial, Wikipedia, Hutchinson 0.04 sec.

(1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management.

(2) Contracting with organizations outside your country for work that could otherwise be done by employees within your company. Contrast with insourcing.

(business)outsourcing - Paying another company to provide services which a company might otherwise have employed its own staff to perform, e.g. software development.
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More often than not, the business case for business-process outsourcing is built almost exclusively on expense reduction through labor arbitrage.
A new beginning: claims outsourcing can fulfill its promise to the ... by Costonis, Michael / Best's Review
We're really all about a labor arbitrage play," said Cadforce President and Chief Executive Robert Vanech.
India link: Cadforce has used 'blendshoring' to combine foreign labor ... by Fine, Howard / Los Angeles Business Journal
Suppliers that fail to fully exploit the labor arbitrage of low-cost labor markets, as well as new technologies, will become the dinosaurs in this new era of high-value outsourcing," Bendor-Samuel added.
Outsourcing; Study: more using specialized contracts by Heffes, Ellen M. / Financial Executive
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