Abstract
In today’s global business, companies face the challenge of competing both locally and overseas. One option used by some companies to survive against globalization is to outsource non-core portion of its value chain. Outsourcing includes important services for companies, such as information technology, and finance and accounting activities. Outsourcing in manufacturing includes intermediates goods (contract manufacturing). Outsourcing represents a form of doing business that transcends the boundaries of a company or a country, and its use affects factors related to manufacturing, including labor. In this chapter the relationship between outsourcing of intermediate goods and labor of the manufacturing sector in Puerto Rico is discussed. Also, is explored the relationship of these factors with capital intensity and return on property, plant and equipment (RPPE) of industries that operate in the Island.
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