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Outsourcing and the U.S. Manufacturers

How did U.S. manufacturers become vulnerable to offshore outsourcing? Give examples to support your answers


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According to Sen. Lieberman (2004) "the offshoring of facilities, labor, capital, technology, and information not only hurts our workers, but also threatens the backbone of our knowledge-based economy".

Sen. Lieberman emphasized that the key players in offshore outsourcing are:
1. India: With a reputation for high quality work at a low cost and a large population of English speakers, India is the most popular destination for skilled IT workforce needs.
2. China: Boasting about one fifth of the total world population, a strong education system, ...

Solution Summary

Inexpensive labor and availability of technical capabilities in selective Asian countries are siphoning off productivity from the United States. India, China, Malaysia, Philippines and Russia are favored by multinational companies in their outsourcing needs.