Optimistic Outsourcing

The editorial entitled "Insourcing" (TR June 2004) indicates that fostering strong ties between the foreign organization and U.S. headquarters causes everyone to be more motivated, more productive, and due to the abundance of new products, happier. Not so fast. Even if we accept that this strategy will promote the development of new products, the most significant employment outcomes will depend on where and how those products are created, serviced, and supported. Those decisions will depend on where those operations will be most profitable. It is by no means obvious to me that development of a new software product in a Chinese lab will mean more tech support jobs in the United States. If anything, successful overseas product development will encourage parent companies to outsource production and postproduction work as well.

Richard Cartwright
Essex Junction, VT