[dalebert]

Some companies must outsource to stay alive.

[Wombat101]

"Some companies must outsource to stay alive."

Bullsh*t! First rule of economics: a successful company that makes a useful, quality product at a reasonable price will ALWAYS survive.

Unsuccesful comapnies either get flushed down the toilet or get snatched up by their more successful rivals. That's what you get for being a bad or poorly run company. Survival of the fittest and all that.

Outsourcing has nothing to do with survival, and everything to do with bottom lines and stock prices. Especially in the tech sector. I can tell you from personal experience that this is the THIRD round of outsourcing in the last 20 years in tech. Only this time it involves people instead of machines and applications.

The formula works like this:

Raise fees +
Cut staff +
Remaining staff works extra hours (productivity savings) +
Eliminate salaries +
Drop Benefits +
Hire third party vendor in foreign country with no labor laws, no minimum wage law, no securities laws and no government-mandated benefits costs

---

Profit and value of CEO's stock options rise.

[harpseal]

Some companies must outsource to stay alive.

Then perhaps they should be the ones which are subject to the famous creative destruction as they cntribute little iif any to the US Economy.

More seriously the USA must demand that India remove its high tariffs andf other restrictions on entry of US goods and services to its markets if they wish to continue to freely export to the USA.