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One-off replacement relocation through outsourcing

This type of relocation through outsourcing involves the one-off elimination of existing jobs at one site and their replacement with jobs at another site. As in one-off expansionary relocation through outsourcing, supplier companies are sought which offer advantages, for example of lower costs or specific skills, which cannot be achieved in the original location. However, s in this relocation type jobs are actually replaced rather than supplemented.

Similar to the one-off relocation as rationalisation, these relocations do not have to be permanent. As costs are the main motive for the initial replacement relocation, and if price differentials between companies change again, jobs could be on the move once more.

(Source: Flecker and Kirschenhofer, 2002)

Example (names and distinguishing details have been changed to ensure anonymity)

  Case 1: T-Bank

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© 2002, Institute for Employment Studies