ABSTRACT

This chapter tells a tale of outsourcing through a synesthetic experience where the reader feels law’s presence and law’s absence. Outsourcing is defined as “contracting with a thirdparty supplier for the management and completion of a certain amount of work, for a specified length of time, cost and level of service.”1 For example, an apparel retailer outsources its manufacturing tasks to external factory owners. An outsourcing agreement creates a supply chain.2 Law governs this supply chain in various degrees. In a value-added supply chain such as technology, research and development, and financial services, governance is strong.3 In a labor-intensive or a low-value supply chain, governance is neither strong nor effective.4