This study analyses the extent and motives of outsourcing and offshoring. We find that in early 2000, 10, 000 23, 000 jobs were transferred overseas from Finland. Annually this corresponds to approximately 1.0 2.5% of normal job losses and creations in the Finnish labour market. The majority of offshored jobs concern manufacturing tasks. Only a tiny number of R&D jobs have been relocated from Finland. Outsourcing is most commonly observed in ser-vice-related functions, but also manufacturing and R&D tasks have been outsourced. The main drivers of production outsourcings have been cost savings, capacity and flexibility increases. In terms of R&D outsourcing, attempts to acquire knowledge, increase flexibility and reduce costs are dominating motives.
