November 16, 2004
Outsourcing Benefits Everyone
While the United States stongly advocates free trade policy, 35 states have already passed legislation preventing their governments from outsourcing work offshore. If outsourcing continues to be stifled in the U.S., American corporations will need to depend on a highly paid workforce even for low-tech jobs, thus creating costlier U.S. goods which would not be as competitive in the world market. Banning outsourcing could therefore eliminate more jobs in the U.S.
According to the Hindu Business Line:
A report prepared by McKinsey Global Institute for the US Chamber of Commerce has pointed out that: "A US company earns on an average a net profit of $1.12 to $1.14 by outsourcing work for which it pays $1.0 abroad." It has further stated that by outsourcing low paid jobs to foreign soil, US capital, intellectual or otherwise, can be utilised to create more profitable and higher income generating jobs.
Read more: Outsourcing: Win-win for all
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