Finance:Personal offshoring

Personal Offshoring or Smallsourcing is a business model where individual consumers or small businesses (often sole proprietorships) directly outsource their work. It is a form of Offshoring. According to the Wall Street Journal, "[t]he approach relies on the same model that drives corporate outsourcing: labor arbitrage, or benefiting from the wage differential between U.S. workers and those in developing countries." It can potentially be a dangerous business model if not managed appropriately. Problems can include language barriers and communications issues due to differences in time zones.