Offshore outsourcing as a business strategy: a qualitative study of the adoption of offshoring by the Portuguese footwear industry

This paper analyses the adoption of offshore outsourcing as a business strategy in the Portuguese footwear industry. Based on a review of the current literature, data was collected through interviews conducted with key Portuguese footwear players and shoe company managers. The main findings suggest that offshoring is more appreciated by managers who attribute their success and growth to the adoption of this strategy. However, these managers admit that they are confronted with local domestic limitations that motivate them to seek out foreign suppliers and to focus on their core activities which contribute to greater profitability. The main benefits they identified are operational flexibility, savings, new knowledge acquisition, risk reduction, and the possibility for growth. The strategy also has some risks such as loss of quality, and management of control over freight lead times.