Outsourcing Blues:

“Business governed by the laws of supply and demand, not restrained by government interference, regulation or subsidy” – Def (Free Market).

                 Ohio Governor Ban’s IT outsourcing of government to keep the jobs locally. His action may be relevant to address a local community which is stung & shocked by the after effects of recession since the markets collapsed in 2008, however such a move is very short sighted for a country like United States 0f America. America has been the biggest benefactor of free trade movement for decades. American companies are among the most successful companies around the world in catering to the needs of a global population. A very short sighted move to please the local population will be regressive for US as they are prone to loss any billion $ worth revenue if the other countries try to protect their respective industries & local population.

                  Free market trade relies heavily on quality offering at the a considerable price, US companies for many decades have successfully understand the crux of free market economy & achieved great financial success which in turn allowed the local economy of US to flourish. As free trade economy believes in quality offering at a reasonable price many countries have suffered while US has prospered in the past. However post recession the policy makers in America have been very regressive in their approach towards outsourcing which they have successfully exploited in the past.

                   A blanket ban on outsourcing will actually cause more harm then benefit the American society as the companies lose their edge of quality products at competitive prices. More importantly companies won’t be able to leverage the availability of talent pool across the world which in turn reduces the cycle & turn around time for their end users.

Today American companies are eyeing the nuclear power market in India which is has a huge potential & can generate revenues of $ 150 Billion, however if India decides to follow the example set by America, America will lose the business which will indeed hurt the American society. It’s time that the western powers do not tend to hypocritical about global economy or conservation of environment.