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In this case, the organization (outsourcer) provides all necessary resources except the workers, who are provided by the vendor. For long-term services, the vendor has full responsibility for delivering the service; the outsourcer provides only a liaison.

The Negative

As with so many global trends, there is significant disagreement over the implications of global competition in services for American prosperity and competitiveness...

Many people are pessimistic about the impact of offshore outsourcing at a time when American workers are having more difficulty finding employment, since it creates personal hardships, reduces the tax base and increases demands on our safety nets. Competitors from lower-wage nations, it is feared, could put downward pressure on profit margins and salaries going forward, while the work being sent overseas is already migrating up the value chain from call centers, help desks and low-end programming to design, accounting, high-end programming, financial analysis and consulting...

General points of the essay

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