http://www.forio.com/outsourcing.htm
Looks at the offshoring phenomenon from the point of competitive advantage, suggesting that when the major portion of production costs comes from design, it makes less sense to outsource. The more custom-tailored a 'product' is, the more difficult it is to offshore.
The real danger, according to this article, is for firms to compete on operational effectiveness [which is what offshoring improves] alone -- this amounts to betting the farm that you are more competent than the competition. The negative effects of offshoring on innovative capacities may, in the long run, lead to the loss of even more jobs.
Posted by jho at January 5, 2004 02:11 PM