Outsourcing relationships require the same care and attention to sound management principles and practices as internal operations and valued employees. If managed well, you can expect continuous improvement, increased value and constant innovation. If poorly managed, services and the overall relationship will deteriorate, leading to higher costs, operational disruptions and lost business opportunities. Financial savings from low international labor rates were the most important motivation for early outsourcing decisions. Offshoring, next-shoring, re-shoring, and near-shoring are several strategies that will be covered later as part of understanding a globalization strategy for a company. Offshoring is the strategy of outsourcing operations abroad by companies from industrialized countries to less developed ones. The evaluation of factors should be carried out not only by considering the current competitive context, but also by trying to imagine the future economic context and how it might change. If the product or function is critical to a company's performance or is considered a core operation, it is best to choose in-house capabilities. For example, if a product is time-sensitive or subject to frequent design changes, third-party manufacturing would likely be a mistake. An excellent example of an outsourcing mistake for this situation is The Boeing Company and the 787 Dreamliner project. But the decision to outsource tends to be a good choice when companies are looking to reduce the cost of capital or perhaps labor-intensive processes. Other reasons to consider outsourcing today are greater flexibility to adapt production in response to changing demand or gain access to new processes or network technologies or leverage external resources.