September 14, 2005
To outsource or not to outsource: the raging political debate in the US
India and China have been the leading outsource markets for companies based in the US, and the number of US-based companies seeking outsourcing partners in these countries is constantly on the rise. This has led to fears of loss of jobs within the US, and the issue has now become a public debate.
Inc.com reports that more than 35 states in the US are considering anti-outsourcing bills, and some states have gone a step further: Tennessee governor Phil Bredesen put his approval on a bill granting incentives to companies who refrain from outsourcing, and New York and California prevent access to public funds for companies who have outsourced work.
Forrester Research reports that over the next decade, outsourcing will result in the loss of 3.3 million jobs in the US. However, in spite of opposition, outsourcing continues to flourish. Inc.com reports:
Ironically, vocal opposition by politicians as well as extensive coverage in the media are both cited by the report as reasons for the recent surge in outsourcing. The report also says that a "second wave" of outsourcing will form where smaller, tech-orientated companies will follow the lead of large corporations in searching overseas for cost-cutting measures.
Read More: Outsource at Your Own Risk
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