Outsourcing is obviously a great way to take a business process that is not one's core competency and let another person, or group of people, handle that task in a sufficient manner. Outsourcing can also be a way for companies to save money by assigning certain tasks to a cheaper workforce. Although their are these obvious benefits, outsourcing can lead to some very serious problems. British Petroleum is the perfect example of the failures that can arise with outsourcing. Outsourcing is all about relationships. When you delegate a certain task to another organization, you are giving them the responsibility to represent your interests. In other words, their mistakes become your mistakes. BP's failure to track performance, safety, and a variety of other factors led to problems with the Deepwater Horizion.
Another interesting topic is the subject of virtual offices. A company goes virtual when they no longer perform their normal day-to-day operations in a physical location, instead choosing to work from home and use an office as a home base for activities such as client meetings. I have a friend that works for a company that uses a virtual office. He designs web pages, which he could much easily do at home. They use their office as a home "hub" that allows them to have a meeting place for clients, employees, and contact. The idea of a virtual office is one that may gain popularity due to the rise in technological jobs.
I think the part about virtual offices as a form of outsourcing is very interesting. Usually outsourcing is seen as sending part of your companies operations over sees to other countries. We sometimes forget that outsourcing happens with physical space and in our own backyards, or in this case our dens and kitchens.
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