hy Outsourcing to Low-Cost Countries. As we observed earlier, one of the most important reasons for offshore sourcing is the cost advantage variable (cf. Trent and Monczka 2002). However, there are more reasons, and it is in particular the combination of factors that cause so many companies to take this step. Some of these factors are (1) a changing environment with increased international competition, shorter life cycles and pressure to reduce costs (Lysons 2000). Although the cost cutting argument sometimes is emphasized, this may well contradict the increased need for shorter life cycles. Here, we find an additional challenge for companies who for sttategic reasons want to apply the concept of leagility (Naylor et al. 1999; Matthyssens, Pauwels and Quintens 2006). They have to combine responsive supply chains, meeting the demands of an agile and flexible supply system, with an inexpensive supply system, associated with lean supply systems utilizing suppliers from low-cost countries. (2) Changing demand and supply - some products are not available any more in domestic or even regional markets (Lysons 2000). (3) Access to better quality or better technology (Alguire and Frear 1994). (4) Access to new markets (Fitzgerald 2005), for either inputs or exports, where production follows the market for end products to save on transportation costs and makes full use of local lowcost factors.