Outsourcings and Its Effect on Business

The "Outsource or Perish!" article describes outsourcing as "being viewed by politicians, legislators, media, and the public in the US as an unmitigated evil." Obviously corporations should be sensitive to the 'public perception' that outsourcing is sending American jobs overseas. Drezner writes, "Should Americans be concerned about the political backlash to outsourcing? Absolutely. Anecdotes of workers affected by outsourcing are politically powerful." However, taking a look at the hard data suggests that, "gross job losses due to offshore outsourcing have been minimal when compared to the size of the entire U.S. economy." He goes on to write "Delta airlines outsourced 1,000 call-center jobs to India in 2003, but the $25 million in savings allowed the firm to add 1,200 reservation and sales position in the United States." The creation or loss of American jobs is especially politically sensitive at a time with the job growth portion of our economy is sluggish, and corporate managers need to be aware of this.…