Does outsourcing really help a company?

A Bloomberg report noted how Atlanta-based Delta Airlines created 1,000 call-center jobs in India in 2003. The Indian operations saved Delta $25m in 2003, enabling the U.S. air carrier to add 1,200 positions for reservations and sales agents at home. But no Delta employees lost their job as a result of outsourcing.

In August 2003, McKinsey & Company estimated that every dollar of U.S. labor costs assigned overseas will generate $1.12-$1.14 in additional value for the American economy by making goods and services cheaper and companies more competitive.

 




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