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Outsourcing Technology in Asia--Analysis of the Changing Face of R&D (Technical Insights)
Frost & Sullivan, June 2004
The topic of outsourcing business functions to Asia has become a divisive issue during the ‘04 election year in the United States, with some political and organizational bodies demanding regulations on offshoring. While the American workforce is critical of offshoring for taking its jobs away, the corporate sector has welcomed it for improving its economic and operational efficiencies. Although concerted efforts on the part of companies to phase out their offshoring activities can mitigate the resentment among incumbent American workers to some extent, there is no real solution to the problem. Moreover, inhibiting this outsourcing trend is expected to affect the world economy negatively in the long term.
This Technical Insights study, Outsourcing Technology in Asia, examines the challenges and benefits of outsourcing technology requirements to Asia. It offers the political and economic advantages and disadvantages of such a move. It also discusses the future of outsourcing and provides the reasons for companies’ decisions to move facilities to Asia and hire native workforce.
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