This study analyses the extent of outsourcing in Finnish manufacturing. We find that in the early 2000s, 60% of companies in the Metal, Engineering and Electronics industries (the Technology industry) on average have outsourced some of their functions. In other manufacturing industries, the corresponding share is 68%. Differentiating between functions and regions, the offshore outsourcing concerns mainly production activities, and to a lesser extent R&D. The study also analyses the expectations of companiesŽ labour demand between outsourcers and non-outsourcers. Roughly half of the companies in the Technology industry that have outsourced R&D will increase their domestic R&D employment during the next 3 years. In other com-panies in the Technology industry, the corresponding share is significantly lower.