What some of the leading minds say about outsourcing

The practice of offshore outsourcing remains a highly contentious and delicate topic amongst the general US population. The outsourcing of jobs to India is in particular subject to the fiercest criticisms. Outsourcing can be a sensitive topic because it hits a specific psychological note with most of the general population, “will your job be the next victim of outsourcing”. However is the anti outsourcing sentiment justified? There are numerous reasons as to why outsourcing benefits US companies, US workers and ultimately the US economy.

We take a look at what some of the leading minds have said about the outsourcing industry:

It is true that outsourcing to India does cause an immediate loss of jobs, but these are more than made up for by the creation of new jobs, Paul O'Neill former US treasury secretary.
“It would be foolish to stop companies from outsourcing. It would make our companies less competitive,”Robert B. Reich, former Labor Secretary under President Bill Clinton comments on the outsource industry.
“Our competitors are doing it and we have to,” says Tom Lynch Employee Relation Director IBM in reference to outsourcing.
In a 2006 survey of American economists 87.5% agreed that the US should eliminate remaining tariffs and other barriers to trade. 90.1% disagree with the suggestion that the U.S. should restrict employers from outsourcing work to foreign countries.
“It’s not hard to see how outsourcing to India could lead to the next great era in American enterprise. Send the maintenance to India and, even after costs, 20 per cent of the budget is freed up to come up with the next breakthrough. The result: more workers focused on real innovation. What comes after services? Creativity.” Chris Anderson, Editor in Chief, Wired, in an editorial.
“If we are not realistic about what we are good at then there is a chance of going backwards in the face of further competition…Innovative companies need to look at which things they should do offshore and what the should do at home,” Bill Gates, Microsoft chief.
“The consequences of moving in that direction (protectionism) in today’s far more globalised financial world could be unexpectedly destabilizing.” Alan Greenspan, Federal Reserve Chairman, US.
“New programming jobs may be springing up in India, but they aren’t canceling job growth in the US.” Catherine Mann. Institute of International Economics, Washington.
“The West cannot expect us to keep opening our markets for goods and put protectionist measures on goods and services where other countries have strength,” Arun Shourie, Indian IT Minister.