Outsourcing is good

In a new article The McKinsey Quarterly explores and then explodes the myths of Outsourcing. After all the hue and cry in US about outsourcing I am sure this special collection on Outsourcing will help people understand the benefits of Outsourcing. Here are few quotes:

Call-center agents, data processors, medical technicians, and software programmers could all find their jobs at risk from the nation's growing trade in services with emerging markets. In fact, offshoring is frequently blamed for the agonizingly slow pace of job growth in the United States, despite a recovering economy.

Critics warn that millions of people in the United States will become jobless.

The current debate is misplaced, however, because the problem is neither trade itself nor globalization more broadly but rather the question of how the country should allocate the benefits of global trade. Trade in services, like other forms of international trade, benefits the United States as a whole by making the economic pie bigger and raising the standard of living. Outsourcing jobs abroad can help keep companies profitable, thereby preserving other US jobs. The cost savings can be used to lower prices and to offer consumers new and better types of services. By raising productivity, offshoring enables companies to invest more in the next-generation technologies and business ideas that create new jobs. And with the world's most flexible and innovative economy, the United States is uniquely positioned to benefit from the trend.