Sure, you can reduce your operating costs. Sure, you can gain access to skilled workers quickly. You can even free your existing knowledge workers to handle more critical tasks.

But don't lose sight of some potential hazards in the outsourcing highway.

• Starting any new business unit is hard work. Focus on long term payback, rather than an immediate rescue
• Be aware of hidden costs. Would it still make sense to outsource, if your costs are twice what was expected?
• Outsourcing may stifle innovation within your company. Hands on engineers will often be in the best position to spot inefficiencies in a service or product