Missing the True Significance of Outsourcing

Faced with a backlash against outsourcing in services, free-traders in Washington have demanded that India reduce its duties on imports. The argument goes that more jobs from U.S. exports would take away the argument for protectionism. For their part, Indian policy makers are betting that outsourcing has become an unstoppable trend that will soon make India an economic powerhouse regardless of what detractors say or attempt. In fact, both views represent wishful thinking and miss the true significance of the outsourcing trade.