Expert View: Outsourcing Is Out – It’s a Political Cold Potato

Companies began outsourcing tasks, including payroll processing, in the 1960s. As the information-technology sector grew, so did the number of outsourced jobs. Today, all types of jobs, from low-level data entry to the transfer of intellectual property, are outsourced from high-wage to low-wage areas. Experts estimate that in India, call centers employ more than a million people, which some analysts suggest means fewer jobs for Americans. In its battle against outsourcing, the Communication Workers of America union has a three-pronged strategy, focusing on poor levels of customer service, data fraud and terrorist threats. In one survey, 80 percent of consumers described offshore service as poor. To remain competitive, companies must please customers in addition to providing low costs, and journalist Chris Walker notes that consumer demands and a corporate response could make the issue a moot point for politicians. – YaleGlobal