Is Outsourcing One of the most misunderstood phenomena of our times?

As the news continues to pour in that US and UK based companies continue to outsource their workload (in the midst of double dip - reemergence of recession) to majority of third party vendors in and outside their country, the hue and cry over job loss is gaining huge attention in local media.

Recently IBM India inked a long term $1billion deal with vodaphone, which led to sharp reactions from the protectionists.  What people fail to understand is outsourcing jobs is not a new phenomena. It as old as any other business model on this earth. The only difference is, earlier it used to be known as subcontracting and now people call it outsourcing.

Recently Obama, in what was intended to be his path breaking speech, talked about creating more jobs and  make efforts to curb  outsourcing. Even though he is aware of the fact that outsourcing cant be curbed still in his effort to please his domestic voters he makes such statements off and on

What he said was  “I've proposed a new American jobs tax credit for each new employee that companies hire here in the United States over the next two years. I'll stop giving tax breaks to companies that ship jobs overseas and invest in companies that create good jobs right here in Colorado."

The truth of the matter is – there is a renewed interest in outsourcing . Experts are talking about the next wave of outsourcing. The first wave contracts are about to expire and companies are introspecting about, what went good or wrong in the first term and revising their outsourcing strategies to remain competitive and profitable.  Hope, we see less of negative reactions in Round 2