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.
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.