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Offshore Outsourcing World: The Outsourcing Sound Bite
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Wednesday March 10, 2004 at 6:43AM - Offshore Outsourcing World Staff

The Outsourcing Sound Bite

A Majority of the Senate may have approved a proposed bill that prohibits government contractors from outsourcing jobs abroad - but there may be more to this issue than how politicians and lawmakers paint it to be.

Which is to say that many politicians present a simplified view of outsourcing. That it's simply a threat to the majority of employed American citizens.

This premise serves as a potent battlecry, ready for use by politicians in an election year. Could this partly be the reason why a flurry of anti-offshore outsourcing bills (39 in 21 states as of latest tally) has been introduced since just last year?

Analysts from META Group agree that the anti-outsourcing alarm is getting a lot of media mileage lately. This is partly politically-driven and sure to escalate as election day draws near.

According to them, potential outsourcers can find reassurance in the fact that there is a difference between how a government and a CIO understand outsourcing.

Despite all the bad PR outsourcing has been getting, they said this has a negligible effect on consumer perception. Meaning, a customer will not necessarily choose Company A over Company B just because the latter outsources to other countries like India.

Rather, META analysts suggest that outsourcers pour in a portion of savings culled from outsourcing to community training programs, just enough to counter negative public perception.

META stands firm on its argument that any laws that are passed will not affect the economy the way politicians are hoping.

The fact that Republicans and Democrats have taken opposing views on outsourcing means for every anti-outsourcing view, there will be a pro-outsourcing one.

related stories, by category:

The politics of outsourcing
In an election year, offshoring of jobs has become a big issue.
Political Turmoil in the Philippines
To become a leader in offshore outsourcing, the Philippines must convince the world it has achieved political stability.
Anger Against Offshore Outsourcing Will Quickly End
Past history shows that legislation directed against offshore outsourcing is unlikely.
An Inside Look at the US Patent System
Carnegie Mellon Univerity professor Michael Shamos speaks on business process patents.
New Jersey Proposes Ban on Offshore Outsourcing
In an effort to save jobs from leaving the state New Jersey State Senator Shirley Turner proposes to ban offshore outsourcing on state contracts.
Marketing, Advertising and PR can be Outsourced
Marketing, PR and advertising are likely targets for outsourcing.
State of Animation - Outsourcing
Outsourced projects in the animation industry is going to India, Korea, and Philippines.
Internationalization Holds Big Growth Potential for E-business
People will flock to the Internet, if they can read it.
The Cost of War
A war on Iraq will cost at least 60 billion dollars. Could this be more wisely spent?
Content and the failure of AOL Time Warner
Many reasons can be sited for the failure of the large media conglomerate. Could it just be TOO much content?
US: Bastion of Innovation
U.S. workers create leading edge technologies that make their companies more productive.
The politics of outsourcing
In an election year, offshoring of jobs has become a big issue.
Real Estate Booms with Outsourcing in Developing Countries
Multinational firms are in a mad dash for office space in Philippines and India.
The Modern Marco Polo Looks to Asia for Outsourcing
The distinct skills of Asian companies and workers continue to spur the outsourcing movement further.
SPOTLIGHT INDIA: US drug makers turn to India to help lower costs
US drug makers could save at least 60% in producing new drugs by outsourcing R&D and other services to India.