The president of the software consulting firm Prolifogy, Inc., Cory Plock, PhD, also serves as an associate at Parsa Wireless Communications and an Adjunct Associate Professor at New York University. He possesses nearly two decades of business experience in the computer software industry.

Question: What constitutes outsourcing?

Cory Plock: Outsourcing involves a company going outside itself for the production of goods or services rather than producing everything internally.

Question: What advantages does outsourcing provide?

Cory Plock: A business that chooses to outsource certain goods can reduce production costs, taking advantage of a division of labor. For instance, a car manufacturer might choose to outsource the production of tires for its vehicles to a company that specialized exclusively in tire manufacture.

Question: Why would a company not wish to outsource?

Cory Plock: Although outsourcing offers clear benefits, especially in terms of cost savings, problems can result when a business decides to outsource in another country. Known as offshoring, this type of outsourcing entails significant risks, both for the individual company and for the country at large, including the loss of intellectual property, reduced product quality, increase of environmental pollution, furthering slave labor, and endangering the national economy.