June 17, 2004


Are you bored reading Offshoring articles...? Let this be your last one to summarize all of them! Most of the articles on "Offshoring and Outsourcing" are redundantly based on the same old topics and arrive at same old conclusions. I have been browsing such articles since last year, but found no news that added to my existing knowledge of it. I could break down the evergreen opinions on Offshoring into simple points as:

1. Companies feel that there is a great reduction in their cost & expenditure by offshoring projects to low-wage countries.

2. These companies feel that it gives them an opportunity to lay more emphasis on R&D, and carry out extensive research in US.

3. India & other countries are announcing, and proving that they are also capable to carry out Research & Development works, and not just low-salaried jobs.

4. Issues about what can be offshored and what should not... (obviously security issues come into play)

5. The US government consistently keeps announcing that the offshoring has not substantially affected the job market in US (in contrary to the statistics). However, everyone knows what the facts are... It also puts the temporary job growth to limelight, inorder to wipe the tears of the affected ones.

6. The US government also attempts to reduce the offshoring trend, but all in vain.

7. Some say that "Offshoring" is just a temporary trend and the industry will be back to normal after a while... but most of them deny that to be a temporary trend.

8. The effective solution suggested by the economists is that, R&D has to grow stronger and come up with innovations and new technology. As a result, the low-wage countries cannot immediately employ such new trends in technology.