The Negative Implications of Offshoring and Strategic Economic Security of Business Organizations

Abstract

The concept of offshoring can be considered as one of the most widely-used solutions by modern business organizations, which generates both positive and negative effects. Offshoring has an influence not only on the state of an organization, but also on its environment (sector, industry, etc.). When an organization decides on the implementation of offshoring in a strategic perspective,
it mainly prefers an analysis of its direct benefits and losses, usually ignoring the meso-and macroeconomic contexts. However, as a long-term perspective, an environment determines the widely understood state of an organization (including the level of its economic security). The goal of
the article is to specify the influence of the negative implications of offshoring at a home location on the strategic economic security of a home organization. The article contains the theoretical considerations.