Why outsource?
(Harvard Business School)
January 24th, 2012
12:14 PM ET

Why outsource?

Harvard Business School alumni offer up rationales in a new report based on nearly 10,000 responses to a survey of 50,000 HBS grads.  Note, in particular, a third of respondents cite the need for skilled labor as driving their outsourcing decision.

According to the report:

"During the past year, more than 1,700 respondents were personally involved in decisions about whether to place business activities and jobs in the U.S. or elsewhere. In these choices, the United States competed with virtually the entire world and fared poorly, losing two-thirds of the decisions that were resolved. Facilities involving large numbers of jobs, high-end work, and groups of activities located together moved out of the U.S. much faster than they moved in."

The study found:

"Of the 1,005 location decisions about potentially moving out of the U.S., the most common alternatives considered were China (42 percent), India (38 percent), Brazil (15 percent), Mexico (15 percent), and Singapore (12 percent)."

So what can be done?  The authors have some ideas here.

Amar C. Bakshi
Post by:
Topics: Jobs • United States

soundoff (5 Responses)
  1. www.twitter.com/hlmelsaid

    business study.

    January 24, 2012 at 3:20 pm | Reply
  2. j. von hettlingen

    There are a few industries who don't take advantage of cheaper labour costs abroad and outsource their manufacturing process. High-end and exclusive products like watches with complicated movements and exquisite jewelry that are hand made and cost a fortune.

    January 25, 2012 at 4:37 am | Reply
  3. krm1007

    AN INDIAN SAGA
    HUMPTY DUMPTY: Had a great fall
    India is pretty much done. The bubble has burst. India is sliding downhill at supersonic speed. Value of rupee has tanked, inflation is in the clouds, stock market has crashed, corruption is rampant, hospitals are burning, people are dying in scores, societal values have rotted, Microsoft and GE are pulling the plug on call centers...Dell and Delta Airlines have almost packed up and shifted the call centers to Canada. Haarvid B School needs to update its case studies and keep it current.

    January 25, 2012 at 7:21 am | Reply
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    February 12, 2012 at 1:17 am | Reply
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    Jobs in kolkata says, Having read this I thought it was really enlightening. I appreciate you spending some time and energy to put this article together. I once again find myself spending a lot of time both reading and leaving comments. But so what, it was still worthwhile!

    March 9, 2012 at 12:18 am | Reply

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