Business Management
The Free-Trade Advantage
By Carla Hills
The loss of more than 2 million manufacturing jobs over the past three years is escalating anxiety over offshore outsourcing. With the trade deficit growing as well, some people worry that the U.S. is exporting more jobs than goods. The increased movement of high-tech jobs to China, India and even South Africa has deepened concerns that jobs in all industries are in jeopardy. Can a policy of free trade succeed in a world where technology and education make it possible for low-wage countries to compete in sectors where U.S. workers predominate?

Collaborative Strategies
Pegging The Right Outsourcing Strategy
By Michael Treacy
As demand for outsourcing is building, the provider landscape is changing rapidly. IT outsourcing is here to stay, but not necessarily with its first-generation innovators. They must get a lot better at their game and offer corporate customers substantial value, or see their business defect to second-generation IT outsourcing firms.

Corporate Culture
India's Dwindling IT Labor Advantage
By Shvetank Shah
If you only watch television news, you may conclude that virtually the entire U.S. IT industry may one day be located in India. There's no doubt that global IT-sourcing activities have increased dramatically, but ironically, this success is straining India's ability to deliver on the value it's promising U.S. companies. Despite India's enormous population, Corporate Executive Board research reveals that India has a limited supply of qualified IT professionals, which suggests that its cost advantage may be cut in half by 2007.

Emerging Technology
Outsourcers Get Into RFID Competition
By Howard Baldwin
In a way, it's natural cross-pollination. When you send manufacturing offshore, it's critical to keep track of shipments in your supply chain swiftly and efficiently. Not surprisingly, offshore IT companies are studying radio-frequency identification (RFID) tags, so they can offer customers of their outsourcing and consulting services insights into the deployment of the latest in scanning technology from their own experience.

Global Issues
The Building Blocks Of Global Competitiveness
By C.K. Prahalad and M.S. Krishnan
It's time to broaden the debate about outsourcing beyond just the job-loss debate, and to illuminate the more strategic advantages available for U.S. businesses: innovation and optimization of global resources in a competitive landscape.

ROI Valuation
Calculated Risk
By Sheeroy Desai
When one financial-services CIO began outsourcing a hefty portion of his legacy programming, he fell victim to the law of unintended consequences. He expected savings of 40 to 50%, but that windfall never materialized. He had to hire additional staff to manage the offshore engagement, and then realized he'd need more onshore programmers than originally projected. After he accounted for offshore turnover, his savings had shrunk to less than 20% overall.