Outsourcing: Long-term gains for all

BBC NEWS | South Asia | Outsourcing: Long-term gains for all
an article by economist kaushik basu who raises important points for the opponents of outsourcing
also a letter to this article sums up everything..
Outsourcing frees up resources which should, in theory at least, allow those resources to become more productive in other or new areas of the economy. The governments of those countries being adversely affected by outsourcing (with the loss of jobs in the short term) should focus on creating an environment that fosters and promotes an innovative, entrepreneurial culture to enable this migration to better jobs in the long term. Better tax incentives, funding channels, start up promotion and less red tape - all these and more will help to combat job losses.