Complexities of Offshore Outsourcing

The debate about offshore outsourcing rages on.

The practice involving U.S.-based companies sending some of their work abroad has many impassioned opponents. Some critics reasonably question the bias of various information sources, such as when consulting companies that help businesses develop offshore outsourcing plans release reports supporting the practice. If a firm is in the business of helping others send jobs overseas, it's likely to encourage companies to do so.

A recent example is accounting and consulting firm Deloitte & Touche, which released the results of a survey finding that the offshore outsourcing of customer service and information technology jobs, engaged in by the likes of Morgan Stanley, J.P. Morgan Chase, General Electric, Citigroup, and Goldman Sachs, saves companies big bucks and is a way for them to stay competitive. (Mark Mahorney examined these economics of outsourcing in more detail.) D&T estimates that each of the 100 biggest financial enterprises will soon be saving an average of about $700 million in operating costs, thanks to outsourcing.

That's not chump change, but it's not necessarily the right thing to do. Consider computer giant Dell and Wall Street's Lehman Brothers, for example. Both reined in their outsourcing activities, due to the public's outcry against the practice.

For this complete story, please visit Complexities of Offshore Outsourcing.

Be the First To Comment

(Please read our comments policy first.)

From:
Show my identity with comment
Your Comment:

Leave this field empty