According to Ernst & Young, a global leader in assurance, tax transaction and advisory services, the two reasons outsourcing is expected to expand in European companies is that the Euro is very strong compared to other currencies, and the corporate competition with the rising standards of global economy.

Globalization (or globalisation) in its literal sense is the process of transformation of local or regional phenomena into global ones. It can be described as a process by which the people of the world are unified into a single society and function together. This process is a combination of economic, technological, sociocultural and political forces.[1] Globalization is often used to refer to economic globalization, that is, integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.

Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business. An insurance company, for example, might outsource its janitorial and landscaping operations to firms that specialize in those types of work since they are not related to insurance or strategic to the business. The outside firms that are providing the outsourcing services are third-party providers, or as they are more commonly called, service providers.

Many businesses have started relying on other countries for employment. Some rely on other countries for computer parts or etc. Many ask one question about outsourcing: is it Good or Bad?Outsourcing is costing American jobs daily. Some view that outsourcing is not affecting our economy. Some businesses are outsourcing because it is cheaper to pay the people from other countries that it is to pay American workers. In the background section of outsourcing examples are given of some companies that outsource for parts and labor.