Beyond the Outsourcing Angst: Making America More Productive

FRB of Dallas, Economic Letter, Vol. 1, No. 2, February 2006

8 Pages Posted: 2 Mar 2006

See all articles by Thomas F. Siems

Thomas F. Siems

Federal Reserve Bank of Dallas - Research Department

Abstract

Outsourcing is not new. For years, American companies have focused on core competencies and contracted out activities that could be accomplished better, faster and cheaper by outside, specialized providers. These vendors may be across town, elsewhere in the country or on the far side of the world.

The motive has always been to remain competitive. In today's business environment, profit and even survival depend on making constant improvements throughout supply chains by lowering costs and improving quality, designs, cycle times and processes. Through specialization and trade, businesses develop important competitive advantages that help them become more flexible and innovative in rapidly changing markets.

Indeed, the best companies keep costs low and boost productivity by doing what they do best and outsourcing the rest.

Keywords: outsourcing, productivity, competitiveness, globalization, innovation

JEL Classification: A20, L00, O30

Suggested Citation

Siems, Thomas F., Beyond the Outsourcing Angst: Making America More Productive. FRB of Dallas, Economic Letter, Vol. 1, No. 2, February 2006, Available at SSRN: https://ssrn.com/abstract=887182

Thomas F. Siems (Contact Author)

Federal Reserve Bank of Dallas - Research Department ( email )

2200 N. Pearl Street
Dallas, TX 75201
United States
214-922-5129 (Phone)
214-922-6076 (Fax)

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