Optimizing costs in a value chain is a key goal of corporate strategy and transaction cost economics and these "incremental" innovations are often where companies can increase their productivity most significantly. Low$-$skill labor is the most commonly outsourced asset across most US industries, meaning that outsource partners will primarily capture benefits associated with increased labor productivity in these industries. Maintaining a 'macro' perspective, what does this likely mean for firms with a long$-$term reliance on outsourcing..