Outsourcing Vs. Offshoring

Summary


Bruce Bartlett addresses a very important issue in his essay "Outsourcing backlash and whiplash" (Commentary, Wednesday). However, in discussing outsourcing, it is imperative to distinguish between domestic outsourcing, through which corporations eliminate positions or entire in-house departments and hire domestic firms to perform those functions, and foreign outsourcing (or, more properly, "offshoring"), where those functions are transferred to a foreign country.

Many opponents of offshoring are enthusiastic supporters of domestic outsourcing. To lump the two concepts together under the rubric of "outsourcing" could cause the current outcry against offshoring to result in a drive to curtail domestic outsourcing as well. The two are different phenomena with quite different economic impacts. Each deserves to be evaluated on its own merits.

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Outsourcing Vs. Offshoring

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