CNBC reports: “One woman believes that companies can send jobs to rural areas and save just as much as they could sending them to places like India.”
An entrepreneur has created Rural Sourcing, an information technology contracting company that aims to compete with India-based outsourcing firms.
What would Paul Craig Roberts have to say?
{ 9 comments }
Isn’t this just the reductio ad absurdum of the anti-outsourcing dogma? They have to arbitrarily choose the level of government at which to implement the restrictions. If protectionism at the federal level is justified, it must also be at the local and interstate level.
To me it seems that ultimately, to be consistent they would have to adopt a soviet-style system of domestic passports, binding everyone permanently to their line of work and their native cities.
I think the left is working toward a synthesis of their anti-outsourcing adgenda and post-9/11 nationalism. This is evidenced, for example, in John Kerry’s use of the term “Benedict Arnold” corporations.
I’m sure many of you see this as well.
JS Henderson misses the point on outsourcing altogether. Production cost is just one factor that encourages outsourcing. Other considerations include tax benefits in the host countries and investment opportunities in the capital markets. In fact, a growing percentage of Dell’s profits in recent years come from financial transactions … not computer sales.
Outsourcing is a component of a complex business model widely used by corporations to keep profits “offshore” in order to avoid taxation in their home countries.
Therefore, the idea of “rural outsourcing” as an alternative to “foreign outsourcing” cannot be taken seriously.
JS Henderson misses the point on outsourcing altogether. Production cost is just one factor that encourages outsourcing. Other considerations include tax benefits in the host countries and investment opportunities in the capital markets. In fact, a growing percentage of Dell’s profits in recent years come from financial transactions … not computer sales.
Outsourcing is a component of a complex business model widely used by corporations to keep profits “offshore” in order to avoid taxation in their home countries.
Therefore, the idea of “rural outsourcing” as an alternative to “foreign outsourcing” should not be taken seriously.
FC Sousa seems to suggest that excessive taxation is responsible for outsourcing. The best way to combat outsourcing, then, is to reduce taxes.
No Henderson, Sousa say the true, only financial transactions (manipulated) make money reardoor; in front you put selling something like PC, sportwear (Nike) Raw material cost being the same, what matter is labour and tax. BIG discount in labour AND tax I mean not a little bit. Corporations want to pay, as idea, NO TAX at all and minimum wage, sothat outsourcing abroad everything, put a LOGO and sell off to americans but without a job it’s difficult to afford to buy this stuff. I see in future many young US guys walking into chinese tennis shoes begging for making a live.
I read your blog on outsourcing. This blog is quite informative for my business, even I have blog on outsourcing so can we exchange the links to share our knowledge resources.
Offshore Outsourcing is ok if you have a clear view of the things. For example India and Romania imports cars, computers, coca-cola, movies, MS Windows and in return they offer work force. See for example ROMsourcing.com , they are renting(!) highly educated operators in a Bucharest office for only $30/day (all expenses included). It is at least a fair deal. Don`t you think!?
Rural Outsourcing does makes sense. Consider for example, the State of Missouri’s investment in re-tooling its rural workforce. Missouri is offering grants, tax incentives, etc. Governor Blunt is serious about harvesting the benefits of a rural workforce to compete on a global scale. Less risk, timely delivery of service, same price, tax incentives, free money, positive public opinion…all are reasons why rural outsourcing should be taken very seriously.
I’m not sure that rural outsourcing is the best remedy for outsourcing to other countries. You should consider that certain processes like professional programming or engineering can not be outsourced neither to rural areas nor countries like India. Recently there emerged new players to offshore outsourcing market, e.g. Belarus, which has numerous outsourcing centers like Move Your Web.
Comments on this entry are closed.