In 1992, the World Bank data said that the US per capital income was$23,200 while Japan had reached $20,300. HOwver in 2002 the US economy with an income of $35,100 had surged ahead of Japan which had incomes hovering around $26,000. There is a cause in this issue, in US this was a period of excellent fiscal management then when an industrilized nation opens itself to economic interaction with a poor country, the scope for the gains are the greatest.
The US was given a competitive edge because of the unprecedented collaboration with India’s information technology sector in the form of both admitting computer scientist to the Silicon Valley and outsourcing work to India. The outsourcing has resulted in quality and productive gains of 15-20% and a customer satisfaction of almost 85%.
If the US companies stopped outsourcing, the foreign companies would out-compete US companies. By the outsourcing US companies was able to maintain a competitive advantage over the foreign firm. The United States reaps between $ 1.12 and $ 1.14, this was estimated by the Global Institute for every dollar spent on outsourcing to India. The US firms save money and become more profitable, increasing returns on investment and benefiting shareholders. The computers and telecommunications equipment are the US products in the foreign facilities boost demand.
When the US companies stopped outsourcing they would not be able to remain competitive, experience growth and create new jobs in the US. The Globalization of Information Technology production has boosted US GDP by $230 billion over the past seven years, this was estimated by Catherine Mann of the Institute for International Economics. The Globalization of the Information Technology services should lead to a similar increase.
To lower cost operations , businesses was able to reduce their overhead costs, compress time to completion with around the clock operations and focuses on core, strategic investments and hiring. The Index of Economic Freedom for the 2004, it confirms a strong, positive relationship between economic freedom.
The critics says that the offshore outsourcing is not the bogeyman. There is a results of measures to counter outsourcing or prohibit outsourcing that will be disastrous, less growth, lower incomes and fewer jobs for the American workers.
The outsourcing has a big impact in the economy, this is now the fastest growing industries in the world. This is the best strategy in your business, the development of your business will be better. Our company has the best research in the help of outsourcing this is really the best.
