Abstract
The emergence of outsourcing and offshoring as key strategies for businesses has given rise to trends like reshoring, nearshoring, and rightshoring. These trends have challenged traditional models of outsourcing and offshoring and have significant managerial implications for supply chain firms. Reshoring increases geographical proximity but can be costlier, while nearshoring balances cost challenges with cultural and linguistic differences. Rightshoring allows firms to select the optimal location for each activity within the global supply chain but requires a thorough analysis of the costs, risks, and opportunities associated with each location. The COVID-19 pandemic has accelerated these trends as firms have faced disruptions in their supply chains and have re-evaluated the risks associated with offshoring. Geopolitical tensions and changing trade policies have also made it more difficult for firms to rely on traditional models of offshoring and outsourcing. This chapter discusses the recent trends in outsourcing and offshoring and their significant managerial implications for supply chain firms.
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Akbari, M. (2024). Current Trends in Reshoring, Nearshoring, Rightshoring, and Emerging Strategies. In: The Road to Outsourcing 4.0. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-97-2708-7_5
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