effects of outsourcing

Filed in archive Global Economy on December 18, 2003

The Economist nicely summarizes the new developments on outsourcing during the last 6 months.

The most interesting new finding is surely the often cited McKinsey calculation on how much value outsourcing creates.

The very interesting study argues that for any dollar spend on outsourcing benefits of $0.12 to $0.14 might come in. This would be a great interest rate...

For more info about outsourcing see our new Outsourcing Weblog

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Response from: TJ (12/19/03 7:17am)

You have to keep in mind, that outsourcing is just a piece of technology. The invention of robots eliminated thousands of jobs, but created better working conditions and a growth for service jobs. Outsourcing is nothings else, but has the big plus, that it's a sincere form of helping the third world to develop.

Response from: TJ (12/19/03 7:20am)

True on an individual basis it only makes sense, if you are sure that there will be another (probably higher paid) job.

But there is always an unavoidable risk involved that this job does not exist. But only risks (as down- and upsides) can help an economy change and progress.

Response from: Tubbydev (12/22/03 2:37am)

Very interesting but it could be more interesting ;-)) if they speak about other offshore countries (like Russia for example ;-)) and subcontractors of "offshore" countries like China for India. In fact, there is some interesting $$ in China because of indian orders, no ?

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