Global relocation of operations has historically played to the advantage of business; that said, we see the flaws in this practice due to the hollowing phenomenon. Anderson describes the hollowing phenomenon as the practice of relocating knowledge-intensive work, a previously uncommon practice (Anderson, 2006). In the pre-digital globalization age, it was common practice for companies to relocate operations involving routine and basic production tasks to lesser developed countries as a way to cut labor costs (Anderson, 2006). As the relocation of knowledge-intensive work has become more common, we have begun seeing its impacts on teams and organizations. When a resource is moved out of one location and placed in another, it creates an imbalance in the workforce at both locations. The location a resource has been taken from will need to redistribute tasks and responsibilities across multiple team members, creating communication shifts and information gaps resulting in a loss of productivity and trust in teams. The location that receives the resource gains more than just an additional resource; they gain constant access to all the resource knowledge while increasing their production ability due to increased bandwidths as tasks are off-loaded (Engelmann & Mabika, 2019).

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