Off-shoring and out-sourcing for shareholder value: Promise versus reality

► Off-shoring and out-sourcing promise significant corporate financial transformation. ► Analysis of US majority-owned foreign affiliates reveals deeper out-sourcing and off-shoring than their parent companies. ► US foreign affiliates also attempt to access new markets and lower labor costs to sustain competitiveness. ► Off-shoring and out-sourcing have not transformed return on assets or shareholder value for US parent companies.