Feeds

The USA: outsourcing heartland

Selective protectionism?

  • alert
  • submit to reddit

Top three mobile application threats

Opinion The schizophrenic attitude of the US towards outsourcing continues to manifest itself, writes Bloor Research analyst Bob McDowall.

US-headquartered organisations continue to be the major providers of outsourcing services, both in contract value and contract size. The major international outsourcing companies - IBM, EDS, Accenture, CSC and HP - are all US-based organisations.

It is ironic to read that, when White House economic advisers state the obvious by describing the move of some US service jobs to places like China and India as "just a new way of doing trade", there is political reaction from both Republican and Democrats. This cannot be unrelated to election year. There have already been moves in a number of US states to prevent jobs being outsourced to overseas locations.

The US is caught between two stools. One of the key measures of domestic growth in the country is the growth in the number of jobs. Furthermore, it is an important political weapon to be used positively by the Republicans and negatively by the challenging Democrats. Quite clearly, outsourcing is an important element of free trade which enables US companies to set up operations overseas and enhance their services competitively. The contra argument is that without more jobs, the US economy will not grow.

The counter to outsourcing is the targeted subsidy of jobs in the USA; particularly in politically sensitive areas such as manufacturing. Tax incentives offset the appeal of outsourcing but at the same time will lead to higher domestic taxes and prices. The USA is becoming selectively protectionist. Political expediency and necessity will continue to drive this. There is major US political support for outsourcing and the revenues it brings to the major US companies in the sector, but not when it happens in their own backyard.

© IT-Analysis.com

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.