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| Infosys Chairman N.R. Narayana Murthy talks outsourcing |
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Despite lingering anti-outsourcing sentiment in the U.S., Infosys Chairman N.R. Narayana Murthy tells CNET News.com's Charles Cooper why the momentum behind this global trend is far from spent. The interview took place in Fremont, Calif., on May 2, 2006. Outsourcing, as the term is typically used in economics, is not necessarily a job destroyer but rather a process of job relocation and may not impact the net number of jobs in a nation or in the global economy. Contrary to the critics, rampant unemployment is not occuring, in the United States, according to official statistics, so outsourcing should not be associated with it at this present time. Logically, "outsourcing" cannot occur without a recipient that "insources" and, according to economists, "outsourcing" means an export in services which renders "insourcing" an import. Hence, economists insist on viewing the outsorucing/insourcing debate as a debate on trade, adequately analyzed with trade theory and recorded through offical national data. For example, Mary Amiti and Shang-Jin Wei claim more jobs are insourced, or imported, than outsourced, or exported, in the United States and the United Kingdom, as well as other industrialized nations. They report that the U.S. and the U.K. actually have the largest net trade surpluses in business services. However, some other countries, such as Indonesia, Germany and Ireland have a net deficit in business services.[5] Similar reports state that "while [the U.S. is] exporting some jobs to other countries, the greatest beneficiary of outsourcing is the U.S. itself." |