POLICY RESPONSES TO THE NEW OFFSHORING: THINK GLOBALLY, INVEST LOCALLY

Abstract

for help with completing this paper. 1 When asked to provide a framework piece on offshoring, I decided it would be much easier to have the work done by an Indian consulting firm. A quick bit of research turned up a perfect partner in Infiniti Research. Not surprisingly, the company has a London-based front end – it is a fact of the industry that many customers prefer to work through a Western intermediary. From their brochure, Infiniti quotes the job at $63,000, no GST. That’s about ten times less than a Canadian management consulting firm would charge, but still too rich for my academic salary. So you are stuck with me. The experience taught me two things. First, you can outsource just about anything, from which I conclude that all of our jobs are threatened. Second, the big money in outsourcing goes to the business analysts who help OECD customers communicate their needs to business process outsourcers in low-cost countries. I conclude from this that off-shoring brings remarkable opportunities to us all. Therein lies the paradox of offshoring: it is both a threat and an opportunity.

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