A Thorough Look At The Real Issues Around Offshoring

from the worth-reading dept

There has been a pretty constant flow of stories about offshoring over the last few months - and while I've posted some here, I've been avoiding the stories over the last few weeks that haven't said much new. However, mhh has submitted this long, but absolutely worth reading article written by Daniel Drezner taking a very thorough look at all the issues associated with offshoring. He basically makes all the points I've been trying to make here, but does it much better, and backs it up with plenty of research. The kneejerk response is going to be for people to post anti-offshoring comments beneath this post, but I'd ask you to actually read the article first and think about what it's saying. The quick summary is that the direct impact of offshoring is much less than people make it out to be. The upsides of offshoring greatly outweigh the downsides. Protectionists policies make things much worse, and actually accelerate the problems people think are caused by offshoring. As for what we should do - there are three areas to focus on: (1) making sure companies understand the true costs of offshoring (and that they're higher than they seem at first) (2) making sure we have programs in place to help those directly impacted by offshoring and (3) making sure politicians don't take the "easy" political response, which will cause a lot more harm to the people they're trying to help. Read the full article, though, no matter how you feel about the issue.
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  1. identicon
    momo, 26 Mar 2004 @ 6:05am

    Re: fixes

    And after reading the article the author ends with the following "until robust job growth returns, the debate over outsourcing will not go away".

    But that's just the point that no one seems to be considering. Why is there a belief that robust job growth will return? Let's take the example of R&D. Suppose I wish to hire someone with a phd in mathematics, computer science, economics or biology. Why should I hire an american? At the very least it makes sense from a cost standpoint to hire someone in india, china or eastern europe. The wages are *way* less, the employee costs are *way* less and if it doesn't work laying off all those new hires doesn't generate the ill will it would in the us. Consider also the current climate towards various types of stem cell research. Why limit myself by working under the laws of the us?

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