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.

Post by:
Topics: Jobs • United States

soundoff (24 Responses)
  1. www.twitter.com/hlmelsaid

    business study.

    January 24, 2012 at 3:20 pm |
  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 |
  3. krm1007

    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 |
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    February 12, 2012 at 1:17 am |
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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 |
  6. PrimeOutsourcing

    Outsource to reduce costs and increase productivity! Thanks for sharing. 🙂

    August 13, 2012 at 11:50 am |


    August 30, 2012 at 9:20 am |
  8. philomina

    how to do this job plz train me

    September 10, 2012 at 11:37 pm |
  9. mary ann magboo

    i want to be a part of your team,just teach me how to start it and make money out of it.

    September 21, 2012 at 4:11 am |
  10. stefonelia williams

    how do i start training?

    September 22, 2012 at 10:00 pm |
  11. rodel

    how do we start this job

    September 23, 2012 at 8:03 am |
  12. rachel

    how do i start this job,what the next step.

    September 23, 2012 at 12:36 pm |
  13. rich

    plz teach me on how to star this job

    September 24, 2012 at 7:10 am |
  14. Tom G.

    I am old enough to have been around at the start of outsourcing to the third world and I can tell you that most arguments in favor of it today are simply disinformation. In the early 70s as Nixon opened up China, US steel production was the first to go....because of EPA and OSHA and minimum wage requirements; also the lack of collective bargaining protection in China and Taiwan. Jobs streamed out under Reagan and subsequent Presidents because wealthy Americans and others invested ever more heavily in those companies and in stripping US corporations, which ended up selling out production facilities under bankruptcy or the threat of it, to China and other destinations. Prices for goods are market driven, just as we are constantly told the price of fuel is. Bring production back to the USA and entrepreneurs will figure out how to make it so American consumers can afford to buy it, just as we did in the 1950s.

    September 24, 2012 at 9:33 pm |
  15. Dorman Songalia

    how will i start or find a job here?

    October 15, 2012 at 6:22 am |
  16. shannon

    as of today i paid the fee for legit online jobs that pay real money, i have spent months online searching for a job working from home that is not a scam i have yet to find one, a real legit job pays you ,you should not have to pay money to have a job that makes no sense , so wish me luck that this to is not another b.s. deal,

    January 16, 2013 at 3:00 pm |
    • Sharon Taker

      The required fee to join this company is what determined whether or not I wanted to join.

      February 18, 2013 at 11:55 am |

    guide me how start this job ?

    November 5, 2013 at 8:19 am |
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    sir g many job karny ha

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    January 3, 2014 at 7:27 am |
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