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Offshoring is option for small companies

REGARDING SCOTT Greenberger's March 23 front-page story, "Governor targets outsourcing of jobs": It is true that we are living in a period where there is a strong debate about the impact of global outsourcing in the US job market. And yes, it is true that Massachusetts has been adversely affected, in fact, more so than the rest of the nation.

 

However, what is missing from the coverage and assessment of the governor's remarks are other aspects of the discussion. Most notably, there also is measurable local value to outsourcing for many small to mid-size businesses (companies of up to 250 employees). Often for these companies, offshoring is not just an option, but a means of survival in competitive and specialized markets.

By now, it is no secret that the labor costs in countries such as India and China are significantly less expensive than here. But this is not the sole benefit for small companies that explore offshore outsourcing. Often there is a net job increase in the United States for these companies, as they leverage their accomplishments abroad to fuel growth of skilled positions domestically in their local markets.

For instance, if a small company uses a team of offshore programmers to develop a new product, the company may have to hire additional sales and support staff in the United States to manage the product. In turn, sales of the product help drive the economy. As a result, these companies can continue to function in the United States, ensuring job preservation here, and operate offices abroad.

Given the heated and emotional debate around outsourcing, it is vital to consider all sides of this issue rather than leveling a singular blast against the entire practice.

AMIT MAHESHWARI
CEO of i-Vantage
Cambridge

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