Often, when I’m asked this question as an Indian in the IT industry, I cannot fully explain what outsourcing really means. Sure it’s cost savings for the company trying to outsource. However, thats like saying I read comics to get a sense of humor. Confusing, right?!

Now here is an answer that I believe will stand the longer scrutiny of more dedicated professionals and strategicians!

Many companies don’t understand yet that outsourcing isn’t about exporting jobs. It’s about importing innovation.

C.K. Prahalad

Why do I believe this? Because, at some level, outsourcing for cheaper costs is a short-term solution. The real problem lies in companies not working towards providing better value for money. Like Intel’s Otellini said … “you cannot save your way out of a recession”. You have to provide more, rather than remove more to really make a difference.

From BW

C K Prahalad