Cross-Border Outsourcing: U.S. International Tax Pitfalls, Pratfalls, And Opportunities

I. INTRODUCTION Broadly defined, “outsourcing” occurs when a business contracts with a third party to provide goods or perform services that traditionally have been provided or performed in-house.[1] Faced with increasing global competition, businesses have come to look to outsourcing as a means of gaining a comparative advantage over their competitors.[2] Outsourcing is thought to benefit a business by allowing it to focus on its “core competencies” or “core activities.”…