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Stephen S. Roach – (Chief Economist and Director of Global Economic Analysis at Morgan Stanley’s Global Economics Team) understands and he has grasped the real impact of outsourcing today in the global economy. Jeremy Rifkin the author of “The End of Work” also has a deep understanding of what I am trying to say related to outsourcing.

I know that we have had outsourcing for a long time. But “IBM” is not betting the future of its corporation on what most people perceive outsourcing is all about. The people at IBM knows that we had a revolution in technology, and today we can do things that were not viable only two years ago. In the late 1990’s a few corporations including Global Crossing connected the entire world with fiber optics, combine that to the advances we had in Broadband technology, and in internet telephony technology, plus all the latest developments related to computer technology, storage capability, faster computers, powerful computer chips, and you have a new cheap communications system around the world like we never seen before.

Outsourcing has been around for a long time, but now for the first time in the history of the world, because the price of communications is so low (You can transfer data, and use the telephone 7/24 for a very low price). Until recently the costs of international telephony, for talking of transferring data was very expensive and did not make economic sense to transfer overseas a lot of functions. Because of this technological revolution only in the last year or so started making economic sense to outsource everything in sight.

With the current technology, we can outsource probably 50 percent of American jobs to a cheaper country such as India, China, and a zillion other places around the globe.

The US is not outsourcing only jobs that Americans don’t want to do. The US today is exporting hi-tech jobs as fast as they can. China, and India are moving to the future and they will develop the state-of-art new software, and future electronic anything. Today, there is something revolutionary and new regarding outsourcing, and it moves at the speed of light.

American workers should get used to getting a job at Wal-Mart with no benefits – instead of working for the “American Dream,” these workers will be working for the “American nightmare.”

It is a very hard task for any government to create strategies for creating new jobs in the economy, and no country can afford to lose the jobs that they already have. Any job is worth saving, because not everyone in the country will become a rocket scientist, or a software engineer. The country needs to create jobs also for the illiterate people.

Job creation is a very important function and a responsibility that most governments from around the world have to fight for.

Multinational corporations don’t have national loyalties, they are in business to make money, and the bottom line is what matters most. I don’t know why some people here in the USA believe that corporations have to be patriotic and have to act as – “US citizen.” But the stock of these public companies, are traded in the various stock exchanges, and a lot of foreigners are part owners of these corporations. These multinational corporations have plants and businesses all over the world, and their shareholders are scattered all over the place as well.

A growing number of major American companies are planning to reincorporate in Bermuda, a move that will save them millions of dollars in taxes. Among these companies is Connecticut-based tool manufacturer Stanley Works - the move would shave about $30 million off Stanley Works' annual tax bill.

Americans went nuts about Stanley Works’ move to Bermuda. But for how long Americans will be able to stop Stanley Works’ from reincorporating in Bermuda to save $ 30 million dollars in taxes? Do you know how many tools Stanley Works’ has to sell to the world to get that extra profit for the shareholders of that corporation?

In five years we are talking about $ 150 million dollars in extra profits. It is a lot of money, and that story applies to most multinational corporations. With the profit cannibalization that is going on in business because of Wal-Mart, it is just a matter of time for us to see an exodus for these corporations from the United States.
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The above article about "outsourcing" was also published by "ArabNews" the most influential newspaper in the Arab world.

In terms of influence, ArabNews is "The New York Times" of the Middle East.
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It's been going on since at least the 1960s in the US. The jobs were primarily factory type blue collar jobs so no big fuss was made about outsourcing until it started affecting the white collar segment of society.

America is totally controlled by capitalism so of course the businesses are going to go where they can get the work done as cheaply as possible. Unlike socialist Europe America could care less about it's citizens or workers. All corporations care about is making a buck. As long as they can find people outside the US to work for less and do a better job than Americans the jobs will continue to go overseas.
That's just the way it is in America.

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The new technologies such as internet telephony, Broadband, Fiber optics cable connecting the entire globe, ever faster computation, hard disk capabilities, and all the new technologies that are becoming available on a daily basis has opened new possibilities for outsourcing that were not viable just one or two years ago.
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I would like to know the reason for our explosion in illegal immigration as well as continued growth in income, GDP, and demand for US products. I would like to know when the middle east became a center for economic progress or a leader in economic opinion? This is doom scenerio of outsourcing is nothing less than wishful thinking among anti-american/anti-capitalist fools that somehow fail to notice the socialist prosperity of their own nations let alone their Cuban neighbor.

So why are American jobs more important than, say, Indian jobs? Also, the majority of US IT workers are actually from overseas, anyway. So the jobs have, themselves, been outsourced--TO the US! In a Just world, they would simply return!

Wow! its nice to hear that through outsourcing the economy of both country are running well.Because of this technological revolution only in the last year or so started making economic sense to outsource everything in sight.outsourcing directoryWith the current technology, we can outsource probably 50 percent of American jobs to a cheaper country such as India, China, and a zillion other places around the globe. The survey's respondents also said that 67.6% of their company's outsourced work was going to other locations in the U.S.