| onstant carping of policy makers and others about | | | | cost countries resulted in lower costs for consumers, |
| the detrimental effect off-shoring / outsourcing will | | | | similarly off-shoring / outsourcing greatly benefits the |
| have on the national economy, seems they are hell | | | | American consumers by providing many more and |
| bent on misleading the public. Little understanding | | | | cheaper services. |
| about the main principles behind off-shoring / | | | | The fear that off-shoring / outsourcing is going to |
| outsourcing, they continue to harp on about the | | | | destroy American jobs is conceptually wrong, for |
| trend that will help eradicate poverty and raise living | | | | every job that is lost a new one is created to |
| standards globally. While, it is true, a number of pink | | | | replace it. By spending dollars on off-shored / |
| slips have been handed out as low-end jobs began to | | | | outsourced services, the same dollars are either |
| be outsourced; the trend has also helped create | | | | reinvested or used to purchase American goods and |
| more new jobs and helped in lower the prices of | | | | services. The American public does not often see |
| many services for consumers. | | | | new jobs created by the same dollars spent on |
| The efforts of various people including a couple of | | | | off-shoring / outsourcing services, but they do return |
| Californian Senators in a bid to scupper the | | | | to US export industries as service providers purchase |
| off-shoring / outsourcing trend will not only | | | | equipment and other goods for their business. |
| discourage outsourcing, but will end up in damaging | | | | Off-shoring / outsourcing as a result of free trade |
| the economy. According to the unanimous consensus | | | | does not alter job numbers in a country. Rather, it |
| of high profile economists, and in the words of G. | | | | changes the job mix to reflect areas where we have |
| Mankiw, Chair for Council of Economic Advisors, free | | | | a greater competitive advantage over other |
| trade, in other words off-shoring / outsourcing is: | | | | countries. Off-shoring / outsourcing services in most |
| “just a new way of doing international | | | | cases leads to job specialisation as employees having |
| trade” and “a plus for the economy in | | | | lost low-end jobs upgrade and specialise, in turn helps |
| the long run.” | | | | raising their living standard. Often, unemployed |
| If you look at it, there is very little difference | | | | workers move on to work in other industries or |
| between international trade of services and | | | | re-train for better paying jobs. |
| international trade in manufacturing. Both countries | | | | A positive trend, off-shoring / outsourcing, it helps in |
| involved in off-shoring / outsourcing gain from the | | | | the following ways: |
| resultant free trade. Before the advent of high tech | | | | 1. Off-shoring / outsourcing of service jobs creates |
| and advanced telecommunications, it was necessary | | | | more jobs in the US export industry when service |
| for service jobs to remain at home in order to be | | | | providers return the favour by buying American |
| close to customers, but since, international | | | | goods and services. |
| competition has allowed call centres and information | | | | 2. Off-shoring / outsourcing results in cost reduction |
| processing firms to service customers from across | | | | for domestic firms. |
| the globe due to the latest in cutting edge | | | | 3. Off-shoring / outsourcing means consumers get |
| information technology and telecommunications. | | | | top quality and a wider array of services at lower |
| In the same way that the cost of transporting goods | | | | prices. |
| was lowered, and a wide array of agricultural | | | | In the long term, off-shoring / outsourcing will benefit |
| products and manufactured goods brought to millions | | | | all Americans, and the IT industry will be the biggest |
| of consumers with the introduction of the 19th | | | | beneficiary of all. In the best interests of American |
| century steam engine, 20th century information | | | | economy, US businesses should continue to off-shore |
| technology promises to perform the same miracle for | | | | / outsource to retain a competitive edge in consumer |
| the service industry. Shifting manufacturing to low | | | | markets. |